Question

8(b) The sale of a good costing Le100,000 attracts a trade discount of 5% and a cash discount of 5%. You are required to calculate: (i) Trade discount value; (ii) Cash discount value; (iii) Net amount payable by the buyer

Accepted Answer

(i) Trade discount = 5% x Le100,000 = Le5,000
Cash payable = Le100,000 - Le5,000 = Le95,000

(ii) Cash discount = 5% x Le95,000 = Le4,750

(iii) Net amount payable = Le100,000 - (Le5,000 + Le4,750) = Le90,250

WAEC Commerce 2017 Theory — Question 16

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