Question 27
Departmental AccountsUse the information below to answer questions 26 and 27.
(₦: Total; Dept. P; Dept. Q)
Sales 10000; 6000; 4000
Purchases 4000; 1000; 3000
Discount received 1000; ?; —
Discounts allowed 2000; —; ?
Discount (allowed and received) are apportioned to the two departments on the basis of departmental sales and purchases.
What is department Q's share of discount allowed?
- A.₦2000
- B.₦1500
- C.₦800
- D.₦1200.
Show the answer and explanation
Answer: C (₦800)
Explanation
Discount allowed is shared by sales: Q = 4 000/10 000 × 2 000 = ₦800.