WAEC Accounting 2016 Objective — Question 9

Question 9 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.

9. One of the purchases invoice of Mr. Dauda showed D96,240 less 12½% trade discount and cash discount of 20%. Since Mr. Dauda paid the amount due within the credit period, the amount paid is A. D77,368 B. D73,157 C. D67,368 D. D63,157

A. D77,368
B. D73,157
C. D67,368Correct
D. D63,157

Explanation

Trade discount=12.5%×96,240=D12,030; balance after trade discount=D84,210; cash discount=20%×84,210=D16,842; amount paid=84,210-16,842=D67,368.

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