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- Name – Quiz 45 – Discounts and Rebates – (Answers)
- Topic – Discounts and Rebates
- Answers with Explanation
Q1. _____ discount is allowed on the sale or purchase of a certain quantity.
Ans. Trade discount is allowed on the sale or purchase of a certain quantity.
Q2. Rebate is allowed on both cash and credit sale.
Ans. The following statement is True.
Q3. Which discount is allowed only early on payment?
Ans. Cash discount is allowed only early on payment.
Q4. The amount of trade discount is not deducted from the invoice.
Ans. The following statement is False. The amount of trade discount is deducted from the invoice.
Q5. _____ discount is not recorded separately in the books of account.
Ans. Trade discount is not recorded separately in the books of account.
Q6. The amount of _____ discount is not deducted from the invoice.
Ans. The amount of Cash discount is not deducted from the invoice.
Q7. Rebate is allowed _____ the sale is made.
Ans. Rebate is allowed after the sale is made.
Q8. Trade discount is allowed only on cash sales or purchases.
Ans. The following statement is False. Trade discount is allowed on both cash and credit sale or purchases.
Q9. _____ discount is recorded separately in the books of account.
Ans. Cash discount is recorded separately in the books of account.
Q10. Rebate is not deducted from the invoice but, it is deducted from sales/purchases in profit and loss a/c.
Ans. The following statement is True.
Q11. In case of rebate, GST charged at the time of sale is _____.
Ans. In case of rebate, GST charged at the time of sale is reversed.
Q12. In case of trade discount, GST is levied at the _____ amount.
Ans. In case of trade discount, GST is levied at the net amount.