A Creditor for Rs1,40,000 accepted machinery of Rs70,000 and agreed to accept cash after giving 10% discount on remaining balance . How much will be credited in Bank Account?
Answer & explanation
Correct answer: option 4
Total Amount paid to creditors- 140000-70000 =70000
Discount = 70,000*10% = 7,000
Cash balance paid = 70,000 - 7000 = 63,000