Question

Sold goods for cash of the list price of Rs 20, 000 at 10% trade discount and 3% cash discount.​

Answer 1

10 % trade discount @20,000 which gives you a value of 18,000. Therefore , Trade discount is given on the catalogue price of the goods while the cash discount is given on the invoice price. Thats we deducted 540 from 18,000 which gives you a value of 17,460.