Q.A trader allows a trade discount of 12% on a list price of ₹6,000. Find the net price and the discount amount.

This is a direct application of the net-price formula for a single trade discount.

$N=6{,}000\times0.88=5{,}280$. Discount amount $=6{,}000-5{,}280=720$.

Here $L = ₹6{,}000$ and $d = 12\%$.

Step 1 — Apply the net-price formula.

Step 2 — Evaluate.

Step 3 — Discount amount.

An equally valid alternative is to compute the discount amount first ($12\%$ of $6{,}000 = 720$) and then subtract it from the list price ($6{,}000-720=5{,}280$) — both routes give the same net price.

Computing $12\%$ of the list price and then reporting that figure as the net price (instead of the discount amount) is a common mix-up — the discount amount ($720$) and the net price ($5{,}280$) are two different figures that add back up to the original list price.