Multiple choice

What amount is to be charged to the account of M/s Shahji & Co. for the transaction of goods worth Rs. 50,000 purchased from M/s Shahji & Co. @ 10% trade discount & 5% cash discount, if half amount is paid by cheque?

  1. Rs. 50,000

  2. Rs. 45,000

  3. Rs. 22,500

  4. Rs. 21,375

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

Cash discount @ 5% on (Rs. 50,000 - 10% trade discount) Rs. 45,000. Half amount paid in cash so other half is treated as credit purchase.