Bought goods from Ranjan ₹ 10,000 @ 5% GST and 10% cash discount. Calculate cash discount.

Question

Calculate the following:

Bought goods from Ranjan ₹ 10,000 @ 5% GST and 10% cash discount. Calculate cash discount.

Answer 1

Cost of the goods bought = ₹ 10,000 @ 5%

GST and 10% cash discount.

GST on Goods Purchased = Cost of goods × 5%.

= 10,000 × \(\frac{5}{100}\)

= ₹ 500.

Net value of Goods Purchased = 10,000 + 500

= ₹ 10,500

Cash discount = Net value × 10%.

= 10,500 × \(\frac{10}{100}\)

= ₹ 1,050.