Creditors were payable after 2 months. They were paid immediately at 10% discount.
In b/s creditors given-80,000
What will be the amount that will be paid to the creditors?
a) Is it 72000(80000-8000)
b) 80000×10/100×2/12=1334
= 78666(80000-1334)
Which is the right one?

Yes Amit, since the words 'per annum' are not suffixed with the rate given, therefore the discount will be Rs 8,000 and payment made will be of Rs 72,000.

Thumbs up to both of you. yes

  • 13
Got it. p.a is not given along with the rate of interest.
  • 1
a option is right as p.a is not given along the int. rate
  • 5
What are you looking for?