Trade credit

Financial Management

Can anyone explain the computation of trade credit., If you know another ways to calculate plz, share ..

Sajeetha R

CA Final

★ 46K+

25-Aug-22 20:22

500

Answers (1)

You have to calculate implicit interest rate on cash discount. Cash discount is 3 %. Period of pre payment is 60 Cost = 3/100 x 360/60 x 100 = 18.56%

Yoga Vishnu

CA Final

★ 11K+

27-Aug-22 10:41