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JAMB Accounting 2014 Objective — Question 10

Question 10 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

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Given: If Emenike Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12%, assuming N22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?

  • A. N25,650
  • B. N22,800
  • C. N19,950Correct
  • D. N18,240

Explanation

Amount paid = N(100−12½)% × N22,800 = N19,950.

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