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JAMB Accounting 2019 Objective — Question 38

Question 38 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2019 Objective paper, with the correct answer and a full explanation.

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A sole trader purchased goods in cash worth ₦2,000 at 2% discount and made a cash sale of ₦1,000 at the same rate of discount. Determine the amount of discount allowed.

  • A. ₦20Correct
  • B. ₦40
  • C. ₦400
  • D. ₦200

Explanation

Discount allowed relates to the cash sale (discount given to the customer): 2% × 1,000 = ₦20. (The discount on the purchase of goods is discount received, not discount allowed.)

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