Question

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at Rs. 100 each plus IGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

Answer 1

Note: Cash discount will not allowed because payment is paid on M/s Auto Help after 30 days.