Home » » $$\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & & \end{array}$$Determine the discount allowed by Department A....

$$\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & & \end{array}$$Determine the discount allowed by Department A....

Question

$$\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & & \end{array}$$

Determine the discount allowed by Department A.

Options

A)
₦5,000
B)
₦9,375 C)
₦5,625
D)
₦8,000

Explanation:

To determine the discount allowed by Department A, the percentage of sales by Department A need to be calculated
Dep A 250,000
Dep B $$\frac{150,000}{400,000}$$
% of Dep A = $$\frac{250,000}{400000}$$ X 100
= 62.5%
∴ Discount allowed in Dep A = $$\frac{62.5}{100}$$ x 250,000
= ₦ 9,375
= ₦ 9,375