PRC-1 · Chapter 2 · Question 6 of 100
'BlueSky Electronics' sells laptops with a list price of Rs. 150,000. A bulk customer is given a 10% trade discount. At what amount should this sale be recorded in the sales day book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Rs. 135,000
Explanation
A trade discount is a definite price reduction given at the time of the sale. The invoice is issued at the net amount (Rs. 150,000 - 10% = Rs. 135,000), and this net amount is recorded in the sales day book.
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