WAEC - Accounts Principles Of Accounts (2018 - No. 11)

Tei Ltd offered 1,560 units of magazines at N60 each. Trade discount is 10%  and cash discount is 10% within 30 days and 5% within 60 days.

The cash discount allowed on the 50th day is?

9360
8,424
4680
4212

Explanation

Unit cost = 60
Quantity = 1560
60 x 1560 = 93600

Cash discount = \(\frac{5}{100}\) x 93600 = 4680

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