M/s. Vaish Traders, Delhi purchased 500 Parker Pens @ ₹ 200 each less Trade Discount @ 15% from Luxor Pens Ltd., Delhi. CGST and SGST was levied @ 6% each. Further, Cash Discount was allowed @ 5% as the payment was made within specified time. What will be the amount of trade discount and cash discount?

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Solution

List Price (500×200)
1,00,000

Less: Trade Discount @ 15%
15,000

Value of Goods
85,000

Add: CGST @ 6%
5,100

Add: SGST @ 6%
5,100

Invoice Value
95,200

Less: Cash Discount @ 5%
4,760

Amount Payable
90,440

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List Price (500×200)	1,00,000
Less: Trade Discount @ 15%	15,000
Value of Goods	85,000
Add: CGST @ 6%	5,100
Add: SGST @ 6%	5,100
Invoice Value	95,200
Less: Cash Discount @ 5%	4,760
Amount Payable	90,440

List Price (500×200) 1,00,000 Less: Trade Discount @ 15% 15,000 Value of Goods 85,000 Add: CGST @ 6% 5,100 Add: SGST @ 6% 5,100 Invoice Value 95,200 Less: Cash Discount @ 5% 4,760 Amount Payable 90,440

List Price (500×200)
1,00,000

Less: Trade Discount @ 15%
15,000

Value of Goods
85,000

Add: CGST @ 6%
5,100

Add: SGST @ 6%
5,100

Invoice Value
95,200

Less: Cash Discount @ 5%
4,760

Amount Payable
90,440