GCE Commerce 1990 Question 18

Question 18

Purchase and Sale of Goods

Use the following document to answer Questions 18 and 19:
A. B and Sons Ltd.
Aba, Nigeria
20th October, 1986
AVO Ire Youths Ltd
27 Amadi Road,
Accra Ghana.
Bought of Avo Ire Youths Ltd
Order No 131 — Carriage paid
100 cartons of baby powder at N10 a carton — N1,000.00
200 pairs of lady shoes at N15 a pair — N3,000.00
Total — N4,000.00
E & O. E
Terms 2½% one month
The above trade document is called

  1. A.an order
  2. B.a standing order
  3. C.a debit note
  4. D.an invoice
  5. E.a catalogue
Show the answer and explanation

Answer: D (an invoice)

Explanation

'Bought of…' with goods, prices, total, E & O E and terms of payment is an invoice from the seller.