Question 9
Cash BookOne of the Purchases invoices of Mr. Dauda showed D96,240 less 12½% trade discount and cash discount of 20%. Since Mr. Dauda paid the amount due within the credit period, the amount paid is
- A.D 77,368.
- B.D 73,157.
- C.D 67,368.
- D.D 63,157.
Show the answer and explanation
Answer: C (D 67,368.)
Explanation
Trade discount: 96,240 × 87.5% = 84,210. Cash discount: 84,210 × 80% = D67,368.