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Question on: JAMB Accounting - 2017

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

Determine the discount allowed by Department A
A
₦5,000
B
₦9,375
C
₦5,625
D
₦8,000
Ask EduPadi AI for a detailed answer
Correct Option: B
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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