Home » Past Questions » Accounts » \(\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & & \end{array}\)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

The correct answer is B.

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

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Discussion (2)

  • 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

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  • Blessing

    I think d correct answer for discount allowed is 15625

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