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Goods worth Rs. 5,000 were supplied to Mr. X at an invoice price of 20% above Cost and allowed trade discount at 10% on invoice price. At what price were the goods sold to X?
  • a)
    Rs. 5,400
  • b)
    Rs. 5,500
  • c)
    Rs. 5,625
  • d)
    Rs. 6,600
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Goods worth Rs. 5,000 were supplied to Mr. X at an invoice price of 20...
Given:
Cost of goods = Rs. 5,000
Invoice price = 20% above cost = 1.2 * 5,000 = Rs. 6,000
Trade discount = 10% on invoice price = 0.1 * 6,000 = Rs. 600

To find:
Price at which goods were sold to Mr. X

Solution:

The net price at which goods were sold after the trade discount is:
Invoice price - Trade discount = Rs. 6,000 - Rs. 600 = Rs. 5,400

Therefore, the answer is option A, Rs. 5,400.
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Community Answer
Goods worth Rs. 5,000 were supplied to Mr. X at an invoice price of 20...
Cost = 5000
invoice price = 5000 + 20% of 5000 = 6000
goods sold to X = IP - TD
= 6000 - 10% of 6000
= 6000 - 600
=5400
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Goods worth Rs. 5,000 were supplied to Mr. X at an invoice price of 20% above Cost and allowed trade discount at 10% on invoice price. At what price were the goods sold to X?a)Rs. 5,400b)Rs. 5,500c)Rs. 5,625d)Rs. 6,600Correct answer is option 'A'. Can you explain this answer?
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