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Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque?
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Sold goods to Kumar and son for two legs at 20% trade discount and 5% ...
Selling Goods to Kumar and Son
Kumar and Son purchased goods from the seller. The seller offered them a trade discount of 20% and a cash discount of 5% on the sales price. Additionally, 60% of the amount received was through a cheque. Let's break down the transaction and its implications.
Trade Discount
- The seller provided a trade discount of 20% to Kumar and Son. This means that the selling price of the goods was reduced by 20%.
- The trade discount is a reduction in the list price of the goods and is often offered to encourage bulk purchases or to maintain good relations with customers.
- In this case, the trade discount is given as a percentage of the selling price.
Cash Discount
- Kumar and Son were also offered a cash discount of 5% on the sales price. This discount is provided to customers who pay in cash or within a specified period of time.
- The cash discount is a reduction in the selling price and is designed to motivate customers to make prompt payments.
- In this case, the cash discount is given as a percentage of the selling price.
Amount Received by Cheque
- The seller received 60% of the total amount due from Kumar and Son through a cheque.
- A cheque is a widely accepted mode of payment in commercial transactions, especially for large amounts.
- By receiving a significant portion of the payment through a cheque, the seller reduces the risk of non-payment or delayed payment.
Implications
- The trade discount and cash discount reduce the selling price of the goods.
- The trade discount of 20% reduces the selling price by 20%.
- The cash discount of 5% further reduces the selling price, but this is calculated after deducting the trade discount.
- The amount received by cheque is 60% of the total amount due, which means that 40% of the amount is yet to be received.
- The seller needs to take into account the discounts provided and the payment received to calculate the net amount due from Kumar and Son.
In conclusion
- The seller provided a trade discount of 20% and a cash discount of 5% on the selling price of the goods to Kumar and Son.
- 60% of the total amount due was received by cheque, while the remaining 40% is yet to be received.
- The seller needs to calculate the net amount due after considering the discounts and the payment received to complete the transaction with Kumar and Son.
Kumar and Son purchased goods from the seller. The seller offered them a trade discount of 20% and a cash discount of 5% on the sales price. Additionally, 60% of the amount received was through a cheque. Let's break down the transaction and its implications.
Trade Discount
- The seller provided a trade discount of 20% to Kumar and Son. This means that the selling price of the goods was reduced by 20%.
- The trade discount is a reduction in the list price of the goods and is often offered to encourage bulk purchases or to maintain good relations with customers.
- In this case, the trade discount is given as a percentage of the selling price.
Cash Discount
- Kumar and Son were also offered a cash discount of 5% on the sales price. This discount is provided to customers who pay in cash or within a specified period of time.
- The cash discount is a reduction in the selling price and is designed to motivate customers to make prompt payments.
- In this case, the cash discount is given as a percentage of the selling price.
Amount Received by Cheque
- The seller received 60% of the total amount due from Kumar and Son through a cheque.
- A cheque is a widely accepted mode of payment in commercial transactions, especially for large amounts.
- By receiving a significant portion of the payment through a cheque, the seller reduces the risk of non-payment or delayed payment.
Implications
- The trade discount and cash discount reduce the selling price of the goods.
- The trade discount of 20% reduces the selling price by 20%.
- The cash discount of 5% further reduces the selling price, but this is calculated after deducting the trade discount.
- The amount received by cheque is 60% of the total amount due, which means that 40% of the amount is yet to be received.
- The seller needs to take into account the discounts provided and the payment received to calculate the net amount due from Kumar and Son.
In conclusion
- The seller provided a trade discount of 20% and a cash discount of 5% on the selling price of the goods to Kumar and Son.
- 60% of the total amount due was received by cheque, while the remaining 40% is yet to be received.
- The seller needs to calculate the net amount due after considering the discounts and the payment received to complete the transaction with Kumar and Son.
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Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque?
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Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque? 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 to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque?.
Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque? 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 to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods to Kumar and son for two legs at 20% trade discount and 5% cash discount on sales price 60% of amount received by cheque?.
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