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JAMB Accounting 2012 Objective — Question 11

Question 11 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2012 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 11. Date | Particulars | Folio | Details | Total 1/6/02 | 2 bags of maize | SL | 1,800 | 1,800 12/6/02 | 3 bags of salt | | | 7,000 Less 5% discount | | | | 7,000 The 5% discount shown above indicates a

  • A. trade discountCorrect
  • B. cash discount
  • C. discount allowed
  • D. discount received

Explanation

Trade discount is the deduction offered to a customer to encourage him to buy in bulk.

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