BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade discount can be calculated by using the formula
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= L-NP
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= L (1-r)
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= L-NP= r% x L
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Explanation:
Detailed explanation-1: -Trade discounts are usually based on the list price (catalogue price). Sales are recorded based on net price. Net price = List price – Trade discount. Therefore, trade discounts are not recorded in the books of accounts.
Detailed explanation-2: -The discount and markup can be calculated using the following formula: Discount = Original price – Sale price. Discount = Discount %
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