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Discount

If a purchaser purchases goods of worth more than 5,00,000 then discount 3% will be allowed for the goods purchased in excess of 5,00,000 in a year. Discount allowed is 12,480. Gross profit ratio 30% on sales. Given sales = 12,80,000 No opening stock. Here how should we consider the discount whether it is trade discount or cash discount?? If discount is considered as trade discount then how can there be an uniform gross profit rate?? Please clarify this to me.....


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

13-Sep-20 22:11

10

Answers (1)

Uniform gross profit (is generally an average rate) through out the year.


Suraj Lakhotia

Suraj Lakhotia

Admin

14-Sep-20 17:11