Multiple choice

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

  1. Rs. 5,000

  2. Rs. 2,500

  3. Rs. 2,250

  4. Rs. 1,125

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

Calculation of cash discount: 50% of (Rs. 50,000 - 10% trade discount) 5%