PRC-1 · Chapter 2 · Question 90 of 100
A business purchased goods worth Rs. 50,000 subject to a 10% trade discount. It later returns half of these goods to the supplier. At what value should the return be recorded in the Purchases Returns Day Book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 22,500
Explanation
The initial purchase was recorded at the net amount after the 10% trade discount: Rs. 45,000. Returning half the goods means returning half that net value: 45,000 / 2 = Rs. 22,500.
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