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Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.?
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Purchased goods of rs 5000( payable at later date) for cash less than ...
Explanation:
The given statement mentions that goods worth Rs 5000 have been purchased at a discounted price. However, it also mentions that the payment for these goods is payable at a later date. This means that the buyer has received the goods but has not yet paid for them.
The reason for delaying the payment could be due to various reasons such as:
1. Cash flow constraints: The buyer may be facing temporary cash flow constraints and may not have sufficient funds to pay immediately. Delaying the payment allows them to manage their finances better.
2. Credit terms: The seller may have offered credit terms to the buyer, allowing them to pay at a later date. This is a common practice in B2B transactions.
3. Trust: Delaying the payment also indicates a level of trust between the buyer and seller. The seller trusts the buyer to pay at a later date, while the buyer trusts the seller to deliver the goods as promised.
Discounts:
The statement also mentions that the buyer received a 20% trade discount and a 5% cash discount. Let's understand what these discounts mean:
1. Trade discount: A trade discount is a reduction in the list price of goods offered by the seller to the buyer. This discount is usually offered to bulk buyers or regular customers. In this case, the buyer received a 20% trade discount.
2. Cash discount: A cash discount is a reduction in the price of goods offered by the seller to the buyer if the payment is made within a specified time period. In this case, the buyer received a 5% cash discount.
Conclusion:
In conclusion, the given statement indicates that the buyer has purchased goods worth Rs 5000 at a discounted price, with a 20% trade discount and a 5% cash discount. The payment for these goods is payable at a later date, indicating a level of trust between the buyer and seller.
The given statement mentions that goods worth Rs 5000 have been purchased at a discounted price. However, it also mentions that the payment for these goods is payable at a later date. This means that the buyer has received the goods but has not yet paid for them.
The reason for delaying the payment could be due to various reasons such as:
1. Cash flow constraints: The buyer may be facing temporary cash flow constraints and may not have sufficient funds to pay immediately. Delaying the payment allows them to manage their finances better.
2. Credit terms: The seller may have offered credit terms to the buyer, allowing them to pay at a later date. This is a common practice in B2B transactions.
3. Trust: Delaying the payment also indicates a level of trust between the buyer and seller. The seller trusts the buyer to pay at a later date, while the buyer trusts the seller to deliver the goods as promised.
Discounts:
The statement also mentions that the buyer received a 20% trade discount and a 5% cash discount. Let's understand what these discounts mean:
1. Trade discount: A trade discount is a reduction in the list price of goods offered by the seller to the buyer. This discount is usually offered to bulk buyers or regular customers. In this case, the buyer received a 20% trade discount.
2. Cash discount: A cash discount is a reduction in the price of goods offered by the seller to the buyer if the payment is made within a specified time period. In this case, the buyer received a 5% cash discount.
Conclusion:
In conclusion, the given statement indicates that the buyer has purchased goods worth Rs 5000 at a discounted price, with a 20% trade discount and a 5% cash discount. The payment for these goods is payable at a later date, indicating a level of trust between the buyer and seller.
Community Answer
Purchased goods of rs 5000( payable at later date) for cash less than ...
4000
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Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.?
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Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.?.
Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased goods of rs 5000( payable at later date) for cash less than 20%trade discount and 5 % cash discount . Here y they have mentioned that payable at later date.?.
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