Selling Goods at 20% Above Cost less 10% Discount

When a business sells goods, it needs to consider the selling price, cost of goods sold, and any discounts offered to customers. In this scenario, the business sold goods to Thakur and Co at a price that is 20% above the cost of the goods. However, the business also offered a 10% discount to Thakur and Co on the selling price. Let's break down the calculation for this transaction:

Calculating Selling Price

The first step is to calculate the selling price of the goods. Since the business sold the goods at 20% above cost, we can use the following formula:

Selling Price = Cost Price + (20% x Cost Price)

Selling Price = 12000 + (20% x 12000)

Selling Price = 12000 + 2400

Selling Price = 14400

Therefore, the selling price of the goods is Rs. 14400.

Calculating Discount Amount

Next, we need to calculate the discount amount that the business offered to Thakur and Co. The discount is 10% of the selling price, so we can use the following formula:

Discount Amount = Selling Price x 10%

Discount Amount = 14400 x 10%

Discount Amount = 1440

Therefore, the discount amount is Rs. 1440.

Calculating Net Amount

To calculate the net amount that Thakur and Co paid for the goods, we need to subtract the discount amount from the selling price:

Net Amount = Selling Price - Discount Amount

Net Amount = 14400 - 1440

Net Amount = 12960

Therefore, Thakur and Co paid a net amount of Rs. 12960 for the goods.

In conclusion, the business sold goods costing Rs. 12000 to Thakur and Co at a selling price of Rs. 14400, which is 20% above the cost of goods sold. However, the business offered a 10% discount to Thakur and Co, so the net amount paid for the goods was Rs. 12960.

12960