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WAEC Financial Accounting 2001 Question 23

Question 23

Source Documents

Given a purchases invoice showing 5 items at N40,000 each less trade discount of 25% and cash discount of 10% the amount to be paid within the credit period is

  1. A.N200,000
  2. B.N180,000
  3. C.N135,000
  4. D.N75,000.
Show the answer and explanation

Answer: C (N135,000)

Explanation

200,000 less 25% trade discount = 150,000; less 10% cash discount = N135,000.