Download App

Recording of Transactions - 2 — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountRecording of Transactions - 23 Marks
Question
What is difference between trade discount and cash discount?
✓

Answer

Basis of Difference
Trade Discount
Cash Discount
Meaning
It is allowed when goods are purchase or sold.
It is allowed at the time of payment.
Recording in books
It is recorded in invoice/ bill but not in the books.
It is recorded in the discount column of the Cash Book’s debit side, if allowed, and credit side, if received.
Purpose
It is allowed to increase sale.
It is allowed for earlier payment.
Deduction
It is deducted from the price-list of the goods.
It is not deducted from the price-list of the goods.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Recording of Transactions - 2→Recording of Transactions - 2 — all question types→Account STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:
    (₹)
i. Sold goods to Ram on Credit 20,000
ii. Received from Ram 15,000
iii. Ram returned goods to us 3,000
iv. Again sold goods to Ram on Credit 10,000
v. Ram returned goods to us 1,000
→
What do you understand by ledger folio?
→
On 1st April, 2019, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.
→
Journalise the following transactions of Raj Kumar Traders, timber merchants:
  1. Purchased timber from Kuldeep Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
  2. Paid to Kuldeep Kumar in full settlement of his account ₹ 9,950.
  3. Paid rent in advance ₹ 10,000.
  4. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation charges ₹ 1,000 paid in Cash.
  5. Purchased goods for ₹ 50,000 from Govind and sold it to Manohar for ₹ 65,000.
→
Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances:
 
 
₹
i.
Manu started business with cash
50,000
ii.
Bought furniture for
500
iii.
Purchased goods on credit
4,000
iv.
Sold goods on cash (cost ₹ 500) for
700
v.
Received rent
200
vi.
Purchased goods for cash
1,000
vii. Withdrew for personal use 700
viii. Paid to creditors 400
ix. Paid for salaries 200
→
Rectify the following errors:
  1. Purchases Book has been undercast by ₹ 1,000.
  2. Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
  3. Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.
→
Show the accounting equation on the basis of the following transactions and also show the Balance Sheet:
  1. Started business with Cash ₹ 60,000 and Goods ₹ 30,000.
  2. Purchased goods for Cash ₹ 40,000 and on Credit ₹ 25,000.
  3. Goods costing ₹ 48,000 sold at a profit of $33\frac{1}{3}\%.$ Three-fourth payment received in Cash.
  4. Goods costing ₹ 20,000 sold at a loss of 5%, out of which ₹ 12,000 received in Cash.
  5. Paid Rent ₹ 4,000 and Salary ₹ 6,000.
  6. Received Cash from Debtors ₹ 15,000.
  7. Paid telephone bill amounting to ₹ 800.
→
What is a Credit Note?
→
Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash? Give reasons.
→
Explain the meaning of the following term:
Stock.
→