CSEET · Business Communication · Common Business Terminologies
A supplier allows 'terms 2/10, net 30' on an invoice of Rs 50,000 dated 1 March. What amount will settle the invoice if the buyer pays on 8 March?
The buyer pays Rs 49,000. Terms 2/10, net 30 give a 2% discount if paid within ten days, and payment on 8 March qualifies. Two percent of Rs 50,000 is Rs 1,000, which is deducted from the invoice amount.
- ARs 50,000
- BRs 49,000Correct
- CRs 48,500
- DRs 47,500
Explanation
2/10 means a 2% cash discount if paid within 10 days; 8 March is within 10 days. Discount = 2% of 50,000 = Rs 1,000, so payment = Rs 49,000. Rs 50,000 ignores the discount, while Rs 48,500 and Rs 47,500 apply wrong percentages (3% and 5%).
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