The correct option is A Given to encourage prompt payment #160;Amount which is deducted by the seller from the amount due at the time of the receipt is calle ...

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Business Studies

Types of Sales Promotion

Cash discount...

Question

Cash discount is ___________.

Given to encourage prompt payment

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Amount deducted from list price

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Not required to be shown in books of accounts

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Given to encourage prompt payment
Amount which is deducted by the seller from the amount due at the time of the receipt is called cash discount. it is given to encourage prompt payment.

Suggest Corrections

Similar questions

Q. A discount of Rs 2000 was given to a supplier on his prompt repayment of debt but the cashier did not enter in the cash book. What should be the adjustment in cash to work out the correct balance of cash book?

The cash book shows a balance of Rs.11,000 which was different from the balance as per bank statement. The difference is found to be due to a credit entry in pass book amounting to Rs.2,000 for direct payment by a customer in bank account. What would be the balance as per bank pass book?

Q. Amount of discount deducted from invoice price is called a __________.

Vishal purchased from Karan Sports Ltd. 200 balls @ Rs. 50 each on which he is given a 20% trade discount. He is further given a 2% cash discount as he made payment for the purchases immediately. Determine the amount that Vishal will debit to the purchase account?

Q. An article costs Rs.

1, 050

to a manufacturer who lists its price at Rs.

1, 200

. He sells it to a trader at a discount of

5

%. The trader gets a further discount of

5

% for cash payment. Calculate the amount that the trader pays to the manufacturer

Join BYJU'S Learning Program

Cash discount is ___________.

The correct option is A Given to encourage prompt payment Amount which is deducted by the seller from the amount due at the time of the receipt is called cash discount. it is given to encourage prompt payment.

The correct option is A Given to encourage prompt payment
Amount which is deducted by the seller from the amount due at the time of the receipt is called cash discount. it is given to encourage prompt payment.