Nelson sells goods on credit. He maintains a full set of accounting records.
The following information was extracted form his accounting records for October 20-4

a. Write up the following accounts for the month of October 20–4: sales, sales returns, Jamil and Nawaz. Balance the accounts of Jamil and Nawaz and bring down the balances. There is no need to total or balance the other accounts.

b. Suggest two differences between cash discount and trade discount.

c. Calculate the rate of trade discount that Nelson allowed Jamil on 4 October.

d. Calculate the rate of cash discount that Nelson allowed Jamil on 7 October.

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1 October 20-4 Debit balances in sales ledger: Jamil 600 Nawaz 140 %24