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CA Foundation Exam  >  CA Foundation Questions  >  A sold goods to B for Rs 20,000. A will grant... Start Learning for Free
​A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requested A to draw a bill. The amount of bills will be:
  • a)
    20,000
  • b)
    19000
  • c)
    19200
  • d)
    Nil
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requ...

To find the amount of the bill, we need to calculate the discounted price that B will pay to A.
Given:
- A sold goods to B for Rs 20,000.
- A will grant a 5% discount to B.
Now, let's calculate the discounted price:
Step 1: Calculate the discount amount:
- Discount amount = 5% of Rs 20,000
- Discount amount = (5/100) * 20,000
- Discount amount = Rs 1,000
Step 2: Calculate the discounted price:
- Discounted price = Total price - Discount amount
- Discounted price = Rs 20,000 - Rs 1,000
- Discounted price = Rs 19,000
Therefore, the amount of the bill will be Rs 19,000.
Final Answer: Option B: 19,000.
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Most Upvoted Answer
A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requ...
Because A granted 5% discount to B and 5% of 20,000 is 1000 so here the answer is 19000
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Community Answer
A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requ...

Calculation of Bill Amount:

To calculate the bill amount, we first need to determine the discounted price after applying the 5% discount.

Discount Amount:
Discount = 5% of Rs 20,000
Discount = 0.05 x 20,000
Discount = Rs 1,000

Discounted Price:
Discounted Price = Rs 20,000 - Rs 1,000
Discounted Price = Rs 19,000

Bill Amount:
Therefore, the bill amount that A will draw for B will be Rs 19,000.

Hence, the correct answer is option 'B' - 19000.
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Ram ratan sold goods to ahmed for ₹100000 on 30th june 2017 for which latter accepts 4 bills of ₹25,000 each drawn on him payable after 2,4,6,8 months respectively. Ram ratan retained the first bill. The second bill was sent by him for collection .The third bill was endorsed by him to C in Part payment of ₹40000 owed to him. The fourth bill was discounted by him with his bankers at discount of 15% p.a.The first bill was met on due date .As regards second bill ,Ahmed met Ram Ratan two days before maturity date of bill and paid him ₹10,000 and accepted a fresh bill for 30 days for balance with interest @18%p.a. This bill as well as the third bill were met by drawer. Ahmed was declared insolvent on 31st December 2017 and on fourth bill becoming due, bank debited Ram ratan with amount of bill and changes of ₹2500 .It is ascertained by Ram ratan that estate of ahmed will not be in position to meet liabilities to an extent of more than 40%.What will be the journal entries to be made in the books of Ram ratan to record the above transactions?

Ram ratan sold goods to ahmed for ₹100000 on 30th june 2017 for which latter accepts 4 bills of ₹25000 each drawn on him payable after 2,4,6,8 months respectively. Ram ratan retained the first bill .The second bill was sent by him for collection. The third bill was endorsed by him to C in Part payment of ₹40000 owed to him .The fourth bill was discounted by him with his bankers at discount of 15%p.a. The first bill was met on due date .The first bill was met on due date .As regards second bill ,Ahmed met Ram Ratan two days before maturity date of bill and paid him ₹10000 and accepted a fresh bill for 30 days for balance with interest 18% p.a.This bill as well as the third bill were met by drawer.ahmed was declared insolvent on 31 st December 2017 and on fourth bill becoming due, bank debited Ram ratan with amount of bill and changes of ₹2500 .It is ascertained by Ram ratan that estate of ahmed will not be in a position to meet liabilities to extent of of more than 40%?

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A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requested A to draw a bill. The amount of bills will be:a)20,000b)19000c)19200d)NilCorrect answer is option 'B'. Can you explain this answer?
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