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Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book?
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Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros....
Transaction Overview
Mittal Bros. made a significant investment of Rs. 50,0000 by purchasing 100 shawls at Rs. 3,000 each. The initial total cost was Rs. 3,00,000, but a trade discount of 10% and a potential cash discount of 3% were applicable.
Calculation of Discounts
- Total Cost Before Discounts:
Rs. 3,00,000 (100 shawls @ Rs. 3,000 each)
- Trade Discount:
10% of Rs. 3,00,000 = Rs. 30,000
Net Cost After Trade Discount:
Rs. 3,00,000 - Rs. 30,000 = Rs. 2,70,000
- Cash Discount:
3% of Rs. 2,70,000 = Rs. 8,100
Final Payment After Cash Discount:
Rs. 2,70,000 - Rs. 8,100 = Rs. 2,61,900
Quality Issues and Returns
Mittal Bros. faced quality issues with 10 shawls, which were returned. The value of returned shawls can be calculated as follows:
- Value of Returned Shawls:
10 shawls @ Rs. 3,000 each = Rs. 30,000
Adjusted Cost After Returns:
Rs. 2,61,900 - Rs. 30,000 = Rs. 2,31,900
Payment Terms
Mittal Bros. settled the payment within 10 days, thus qualifying for the cash discount. The final transaction will reflect a payment of Rs. 2,31,900, accounting for the trade and cash discounts, minus the returns.
Bookkeeping Entry
The transaction will be recorded in the Purchases Account with the final amount after discounts and returns, ensuring accurate financial records for Mittal Bros. This will also affect the Cash/Bank Account reflecting the payment made.
This detailed breakdown ensures clarity in the financial dealings of Mittal Bros. and assists in accurate bookkeeping practices.
Mittal Bros. made a significant investment of Rs. 50,0000 by purchasing 100 shawls at Rs. 3,000 each. The initial total cost was Rs. 3,00,000, but a trade discount of 10% and a potential cash discount of 3% were applicable.
Calculation of Discounts
- Total Cost Before Discounts:
Rs. 3,00,000 (100 shawls @ Rs. 3,000 each)
- Trade Discount:
10% of Rs. 3,00,000 = Rs. 30,000
Net Cost After Trade Discount:
Rs. 3,00,000 - Rs. 30,000 = Rs. 2,70,000
- Cash Discount:
3% of Rs. 2,70,000 = Rs. 8,100
Final Payment After Cash Discount:
Rs. 2,70,000 - Rs. 8,100 = Rs. 2,61,900
Quality Issues and Returns
Mittal Bros. faced quality issues with 10 shawls, which were returned. The value of returned shawls can be calculated as follows:
- Value of Returned Shawls:
10 shawls @ Rs. 3,000 each = Rs. 30,000
Adjusted Cost After Returns:
Rs. 2,61,900 - Rs. 30,000 = Rs. 2,31,900
Payment Terms
Mittal Bros. settled the payment within 10 days, thus qualifying for the cash discount. The final transaction will reflect a payment of Rs. 2,31,900, accounting for the trade and cash discounts, minus the returns.
Bookkeeping Entry
The transaction will be recorded in the Purchases Account with the final amount after discounts and returns, ensuring accurate financial records for Mittal Bros. This will also affect the Cash/Bank Account reflecting the payment made.
This detailed breakdown ensures clarity in the financial dealings of Mittal Bros. and assists in accurate bookkeeping practices.
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Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book?
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Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book?.
Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book?.
Solutions for Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? in English & in Hindi are available as part of our courses for UPSC.
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Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book?, a detailed solution for Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? has been provided alongside types of Sold pesonal investment and invest in business Rs.50,0000 Mittal Bros. purchased 100 shawls @ 3,000 per shawl. Allowed 10% Trade Discount ogle Le and 3% Cash Discount if payment is made within 14 days. Mittal Bros. received 10 shawls of poor quality, which it returned. Mittal Bros. settled the payment in 10 days. from which book? theory, EduRev gives you an
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