Commerce Exam > Commerce Questions > Sold goods rs 10000 to Mahendra at 5%trade di...
Start Learning for Free
Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount?
Most Upvoted Answer
Sold goods rs 10000 to Mahendra at 5%trade discount and received chequ...
Selling Goods to Mahendra at a Trade Discount and Receiving a Cash Discount
When selling goods, businesses often offer discounts to customers to encourage sales and build customer loyalty. In this scenario, you sold goods worth Rs 10,000 to Mahendra. Let's break down the transaction, including the trade discount and cash discount.
1. Trade Discount
A trade discount is a reduction in the selling price given to the customer at the time of the sale. It is used to incentivize bulk purchases, promote customer loyalty, or clear excess inventory. In this case, you offered a trade discount of 5% to Mahendra.
- Goods sold: Rs 10,000
- Trade discount: 5% of Rs 10,000 = Rs 500
- Selling price after trade discount: Rs 10,000 - Rs 500 = Rs 9,500
After applying the trade discount, the selling price of the goods for Mahendra is Rs 9,500.
2. Cash Discount
A cash discount is a reduction in the selling price given to the customer as an incentive for prompt payment. It encourages customers to pay early, improving cash flow for the seller. In this case, you received a cash discount of Rs 50 from Mahendra.
- Cash discount received: Rs 50
The cash discount of Rs 50 is deducted from the amount Mahendra owes for the goods.
3. Final Amount Receivable
To calculate the final amount receivable, we subtract the cash discount from the selling price after the trade discount.
- Selling price after trade discount: Rs 9,500
- Cash discount received: Rs 50
- Final amount receivable: Rs 9,500 - Rs 50 = Rs 9,450
Therefore, the final amount receivable from Mahendra after considering the trade discount and cash discount is Rs 9,450.
Summary
To summarize, you sold goods worth Rs 10,000 to Mahendra, offering a trade discount of 5%. Additionally, you received a cash discount of Rs 50. After applying the trade discount, the selling price for Mahendra was reduced to Rs 9,500. The cash discount of Rs 50 was then deducted, resulting in a final amount receivable of Rs 9,450.
By offering trade and cash discounts, businesses can attract customers, increase sales, and promote prompt payment. These strategies contribute to customer satisfaction and help maintain a healthy cash flow for the seller.
When selling goods, businesses often offer discounts to customers to encourage sales and build customer loyalty. In this scenario, you sold goods worth Rs 10,000 to Mahendra. Let's break down the transaction, including the trade discount and cash discount.
1. Trade Discount
A trade discount is a reduction in the selling price given to the customer at the time of the sale. It is used to incentivize bulk purchases, promote customer loyalty, or clear excess inventory. In this case, you offered a trade discount of 5% to Mahendra.
- Goods sold: Rs 10,000
- Trade discount: 5% of Rs 10,000 = Rs 500
- Selling price after trade discount: Rs 10,000 - Rs 500 = Rs 9,500
After applying the trade discount, the selling price of the goods for Mahendra is Rs 9,500.
2. Cash Discount
A cash discount is a reduction in the selling price given to the customer as an incentive for prompt payment. It encourages customers to pay early, improving cash flow for the seller. In this case, you received a cash discount of Rs 50 from Mahendra.
- Cash discount received: Rs 50
The cash discount of Rs 50 is deducted from the amount Mahendra owes for the goods.
3. Final Amount Receivable
To calculate the final amount receivable, we subtract the cash discount from the selling price after the trade discount.
- Selling price after trade discount: Rs 9,500
- Cash discount received: Rs 50
- Final amount receivable: Rs 9,500 - Rs 50 = Rs 9,450
Therefore, the final amount receivable from Mahendra after considering the trade discount and cash discount is Rs 9,450.
Summary
To summarize, you sold goods worth Rs 10,000 to Mahendra, offering a trade discount of 5%. Additionally, you received a cash discount of Rs 50. After applying the trade discount, the selling price for Mahendra was reduced to Rs 9,500. The cash discount of Rs 50 was then deducted, resulting in a final amount receivable of Rs 9,450.
By offering trade and cash discounts, businesses can attract customers, increase sales, and promote prompt payment. These strategies contribute to customer satisfaction and help maintain a healthy cash flow for the seller.
Community Answer
Sold goods rs 10000 to Mahendra at 5%trade discount and received chequ...
I can't understand ur questions ask clearly
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount?
Question Description
Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount?.
Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount?.
Solutions for Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? defined & explained in the simplest way possible. Besides giving the explanation of
Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount?, a detailed solution for Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? has been provided alongside types of Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? theory, EduRev gives you an
ample number of questions to practice Sold goods rs 10000 to Mahendra at 5%trade discount and received cheque rs 50as a cash discount? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup