Question 11
Cash BookUse the following information to answer questions 11 and 12.
Tei Ltd offered 1,560 units of a magazine at ₦60.00 each. Trade discount is 10% and cash discount is 10% within 30 days and 5% within 60 days.
The amount payable if payment is made on the 40th day is
- A.₦88,920.
- B.₦84,240.
- C.₦80,028.
- D.₦72,025.
Show the answer and explanation
Answer: C (₦80,028.)
Explanation
1,560 × 60 = 93,600 less 10% trade = 84,240; within 60 days 5% cash discount: 84,240 × 0.95 = ₦80,028.