Discounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2009

Cash discount is often recorded on?

A. The debit side of the cash book
B. The credit side of the cash book
C. The folio column of the cash book
D. Both credit and debit side of the cash book

Question 7:

• JAMB 2011

Use the information below to answer question .
Adamu Stores bought accessories from Mu'azu Beverages for N400 on credit. A trade discount of 10% and a cash discount of 15% were provided.
Calculate the cash discount?

A. N60
B. N90
C. N40
D. N100

Question 8:

• JAMB 2012

The 5% discount shown above indicates

A. Trade discount
B. Cash discount
C. Discount allowed
D. Discount received

Question 9:

• JAMB 2014

Given:
If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?

A. #25,650
B. #22,800
C. #19,950
D. #18,240

Question 10:

• JAMB 2014

If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?

A. #4,500
B. #8,550
C. #9,000
D. #9,450