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  • CA CPT Test Series 1
  • Purchased goods worth Rs. 40,000 @ 10% Trade Discount and...
Multiple choice

Purchased goods worth Rs. 40,000 @ 10% Trade Discount and 5% Cash Discount and the amount is paid by cheque. What is the amount of discount recorded in the books?

  1. Rs. 3,600

  2. Rs. 1,800

  3. Rs. 2,000

  4. Rs. 4,000

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The amount of cash discount recorded in the books & calculated as on Rs. 36,000 @ 5% (5% of Rs. 36,000 = Rs. 1,800).

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