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4: Creditors for sale of goods A Ltd. (the Company) makes purchase of steel for its consumption in normal course of business. The purchase terms

4: Creditors for sale of goods A Ltd. (the Company) makes purchase of steel for its consumption in normal course of business. The purchase terms provide for payment of goods at 30 days credit and interest payable @ 12% per annum for any delays beyond the credit period. Analyse whether the transaction leads to any financial instruments and if yes, that what is the nature of that financial instrument.

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