Question

Goods costing ₹ 20000 is sold at profit of 20% on cost and trade discount is allowed @ 10% and cash discount of 10% is also allowed. Half the payment was received at the time of sales. What is the amount of cash received at the time of sales ?

Answer 1

amt he received in cash at the time is 9720 Rs.

Answer 2

GIVEN :  Goods cost = 20,000 ;  Total Discount = 20% ; Cash Discount=10%

Trade Discount = 10%

TO FIND : Amount of cash recieved at the time of sales

SOLUTION :

As the transaction is half done on credit nad haf done on cash and trade as well as cash discount is given .

So, firstly we will deduct trade discount = 20,000 ×$\frac{10}{100}$

                                                                  = 2,000

Now, the value of goods is 20,000 - 2,000

                                           = 18,000

Cash Discount = 18,000 × $\frac{10}{100}$

                        = 1,800

Cost of goods =  18,000 - 1,800

                        = 16,200

Half payment made in cash = 16,200 × $\frac{50}{100}$

                                               = 8,100

Rest is credit which is 8,100 .

Cash recieved at the time of sales is 8,100 .