PRC-1 · Chapter 2 · Question 45 of 100
'Apex Supplies' sells goods with a list price of Rs. 50,000 to a customer, less a 10% trade discount. The customer pays immediately by cheque to avail a further 5% settlement discount. What amount is recorded in the bank column of the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Rs. 42,750
Explanation
The invoice is for Rs. 45,000 (after the 10% trade discount). The 5% cash discount on Rs. 45,000 is Rs. 2,250. The customer pays the net amount: Rs. 45,000 - Rs. 2,250 = Rs. 42,750, which goes in the bank column.
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