Introduction:
In this scenario, goods have been sold to Sahil for a price of ₹5000. The seller has offered two types of discounts, namely 10% trade discount and 5% cash discount. Sahil has availed the cash discount, and the question is to explain this scenario in detail.

Trade Discount:
A trade discount is a reduction in the list price of goods or services offered by a seller to a buyer. This discount is usually offered as a percentage of the list price and is intended to encourage the buyer to make a purchase. In this scenario, the seller has offered a 10% trade discount on the list price of ₹5000.

Cash Discount:
A cash discount is a reduction in the price of goods or services offered by a seller to a buyer for paying the invoice within a specific time frame. This discount is usually offered as a percentage of the invoice price and is intended to encourage the buyer to pay the invoice promptly. In this scenario, the seller has offered a 5% cash discount on the net price of the goods after deducting the trade discount.

Calculation of the Net Price:
The net price is the price of goods after deducting all the discounts. In this scenario, the net price can be calculated as follows:

List Price = ₹5000
Trade Discount = 10% of ₹5000 = ₹500
Net Price after Trade Discount = ₹5000 - ₹500 = ₹4500
Cash Discount = 5% of ₹4500 = ₹225
Net Price after Cash Discount = ₹4500 - ₹225 = ₹4275

Conclusion:
In conclusion, Sahil has availed the cash discount of ₹225 by paying the net price of ₹4275 instead of the list price of ₹5000. The seller has offered a 10% trade discount and a 5% cash discount to encourage Sahil to make a purchase and pay the invoice promptly.