Step 1: Calculate Discounts for Bill 1
Since the payment for Bill 1 is made within 10 days, only the 2% cash payment
discount applies:
Discount for Bill 1 = 9,800 X 2/100 = 196
Amount paid for Bill 1:
Amount = 9,800 - 196 = 9,604
Step 2: Calculate Discounts for Bill 2
Since the payment for Bill 2 is made in cash on the same day, discount ( 5%) will
apply:
5% discount: 5% of 5,480 = 5,480 X 5/100 = 274
Total discount for Bill 2:
Amount paid for Bill 2:
Amount = 5,480 - 274= 5,206
Step 3: Calculate Total Amount Paid
Total amount paid:
Total = Amount for Bill 1 + Amount for Bill 2
Total = 9,604 + 5,206 = Rs. 14810
Option (b) is the correct answer.
Study Notes
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