Question

in below case you people not deduct the amount of discount when you recorded the transaction in cash book you just take the amount directly in bank or cash coulem like these transaction

an. 10 He pays Said by Check = OMR. 1980 and receive discount = OMR. 20
Jan. 11 He receive check from Wasim = Rs. 970 and allow him discount = Rs. 30
an. 22 He pays Essam traders in cash = OMR. 2000 and receives discount = OMR. 100

but in below transaction you deduct the amount of discount like
these truncation
Bought goods for OMR. 2,000 paid cheque for them, discount received 1%
Received a cheque from Irfan to whom goods were sold for OMR. 800. Discount allowed 12.5 % and
so in this case ,you people first calculate amount of discount and deducted the amount of discount from the amount then recorded the transaction in cash book.

so, i want to know the reason ?? i understood the cash book and the solution of both but i want to know the reason why fist case we not dedact like the second one

Answer 1

Ans. In the given question discount has been deducted by two methods. Firstly method is giving flat discount in amount on the payment to be made or received. Whereas on the other hand other method is using percentage on amount to calculate discount. In first case, first method of flat discount in terms of amount is given straight away. Like on January 10, OMR 1980 is payment made by check & amount of OMR 20 is flat discount offered. So in first case it requires no further calculation as discount amount is mentioned straight away. In second case, Percentage is to be calculated first to determine the amount of discount. Like bought goods for OMR. 2,000 paid check for them, discount received 1%. In this case we need to calculate discount first i.e., OMR 20 (OMR 2000 * 1%) and after that payment of OMR 1980 (OMR 2000 - OMR 20) is made after deducting discount. So main differences between two cases is that, in one case we are given discount amount straight away so we do not need to make any further calculations whereas in other case discount is mentioned in terms of percentage which in turn requires us to calculate discount first and after that calculate net amount to be paid.