PRC-1 · Chapter 2 · Question 52 of 100
'Apex Electronics' sells goods with a list price of Rs. 400,000 on credit to a customer. A 10% trade discount is agreed upon. At what value should this transaction be recorded in the sales day book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 360,000
Explanation
A trade discount is deducted immediately before the transaction is entered into the accounting records. The invoice is generated for the net amount: Rs. 400,000 - 10% = Rs. 360,000.
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