Question

09. Sandeep& Sons, Delhi orders pearl jewellery from Nasir Bros, Hydrabad They enter into a contract and
makes certain that the payment will be made only on receiving the goods at Delhi in their Shop. Identify the
tem of trade and its features in the above example.​

Answer 1

Answer:

Bookkeeping is all about recording and organising financial data while accountants take that data to prepare reports and get them ready for HMRC.

Answer 2

The term of trade in the example is "Cash-on-delivery".

Since Sandeep & Sons stated that they would only pay the amount when the goods are received, It will be considered an example of cash-on-delivery trade.

Features of cash-on-delivery:-

• Flexibility in payment: since the customer doesn't need to pay the money beforehand, there is no risk of money loss. The buyer can check the product before making payment and return it if defective.
• No risk of online frauds: Since the cash will be paid after receiving the product, there is security from any frauds in case of online payments.
• An extra cost is charged: when customers opt for cash-on-delivery they have to pay extra fees for it.