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Sold to kanika and co. Goods costing ₹100000 at 20% profit, allowing 10% trade discount and 5% cash discount kanika ans co made 40% payment immediately by cheque.?
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Sold to kanika and co. Goods costing ₹100000 at 20% profit, allowing 1...
Calculation of Selling Price:
  • Cost price of goods = ₹100000

  • Profit = 20%

  • Selling price = Cost price + Profit

  • Selling price = ₹100000 + 20% of ₹100000 = ₹120000


  • Trade Discount:
  • Trade Discount = Selling price x Trade Discount %

  • Trade Discount = ₹120000 x 10% = ₹12000

  • Amount after Trade Discount = Selling price - Trade Discount = ₹120000 - ₹12000 = ₹108000


  • Cash Discount:
  • Cash Discount = Amount after Trade Discount x Cash Discount %

  • Cash Discount = ₹108000 x 5% = ₹5400

  • Amount payable after Cash Discount = Amount after Trade Discount - Cash Discount = ₹108000 - ₹5400 = ₹102600


  • Payment:
  • 40% payment made immediately by cheque

  • 40% of Amount payable after Cash Discount = 40% of ₹102600 = ₹41040


  • Therefore, Kanika and Co. made a payment of ₹41040 immediately by cheque. The total amount payable after availing Trade Discount and Cash Discount is ₹102600.
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