WAEC Accounting 2020 Objective — Question 29

Question 29 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

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 36,660Correct

Explanation

Trade discount = Le(50,000-8,000) x 3% = Le1,260. Cash discount = Le(50,000-8,000-1,260) x 10% = Le4,074. Cash paid = Le(50,000-8,000-1,260-4,074) = Le36,666.

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