Atul purchased goods costing Rs. 50,000 at an invoice price, which is 50% above cost. On invoice price he enjoyed 15% trade discount and Rs. 3,750 cash discount on cash payment of goods in lump sum at the time of purchase. The purchase price to be recorded in the books before cash discount will be

Cost price = Rs. 50,000. Invoice price is 50% above cost = Rs. 50,000 + (50% of Rs. 50,000) = Rs. 75,000. Trade discount of 15% on invoice price = Rs. 75,000 × 15% = Rs. 11,250. Purchase price after trade discount = Rs. 75,000 - Rs. 11,250 = Rs. 63,750. Cash discount is NOT recorded in the purchase price - it's a separate gain if payment is made in time. So the answer is Rs. 63,750.