passwella.
Menu

JAMB Principles of Accounts 1997 Question 47

Question 47

Branch Accounts

If goods are invoiced to the branch at cost and the invoice par value is ₦2 000 with 5% discount rate, cash remitted to the head office is

  1. A.₦2 100
  2. B.₦2 000
  3. C.₦1 900
  4. D.₦100.
Show the answer and explanation

Answer: C (₦1 900)

Explanation

Cash remitted = 2 000 − 5% (100) = ₦1 900.