Question 29
Cash BookUse the following information to answer questions 29 to 31.
Kwamenah bought goods worth Le 50,000 from Doe and Sons Limited on the following terms: 3% trade discount; 10% cash discount. Kwamenah returned defective goods worth Le 8,000 the next day and made payment for the remaining goods on the due date.
The cash paid by Kwamenah was
- A.Le 43,650.
- B.Le 43,500.
- C.Le 37,800.
- D.Le 36,660.
Show the answer and explanation
Answer: D (Le 36,660.)
Explanation
Goods kept = 50,000 − 8,000 = 42,000; less 3% trade discount = 40,740; less 10% cash discount = about Le 36,666, i.e. option D.