Multiple choice

Consider the following data pertaining to credit purchases made by K Ltd, a dealer in electronic goods, for March 2016:

       
Date Particulars Number of units Rate per unit (Rs.) Trade discount
March 01 Black and white TVs 50 3,000 10%
Colour TVs 10 6,000 10%
March 09 Tape recorders 10 1,000 10%
Two-in-one 10 1,500 10%
March 19 Audio cassettes 100 30 5%

At the time of making payment on March 31, 2016, the suppliers allow a cash discount of 10% on the above purchases. What will be the amount of purchases for March 2016?

  1. Rs. 2,14,350

  2. Rs. 2,38,000

  3. Rs. 1,92,915

  4. Rs. 2,38,600

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The amount of trade discount shall be deducted from the amount of each purchase. Hence, the amount of purchases (after deducting trade discount): Purchases = 1,35,000 + 54,000 + 9,000 + 13,500 + 2,850 = Rs. 2,14,350

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