WAEC Financial Accounting 2018 Question 12

Question 12

Cash Book

Use 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 cash discount allowed on the 50th day is

  1. A.₦9,360.
  2. B.₦8,424.
  3. C.₦4,680.
  4. D.₦4,212.
Show the answer and explanation

Answer: D (₦4,212.)

Explanation

5% × 84,240 = ₦4,212.