MISCELLANEOUS EXERCISE - 1 - Fill in the Blanks

1. A person who draws the bill is called Drawee

2. An Auctioneer is an agent who sells the goods by auction.

3. Trade discount is allowed on the Catalogue/list price.

4. The banker’s discount is also called Commercial Discount.

5. The banker’s discount is always higher than the true discount.

6. The difference between the banker’s discount and the true discount is called Bankers Gain.

7. The date by which the buyer is legally allowed to pay the amount is known as Legal due date.

8. A A broker is an agent who brings together the buyer and the seller.

9. If buyer is allowed both trade and cash discounts, Trade discount is first calculated on Catalogue / list price.

10. Invoice Price = List price (catalogue Price) – Trade Discount.