WAEC Book Keeping 2019 Questions and Answers | Obj/Theory Expo - May/June - Scholarships, Nigeria Universities, Polytechnics And Admissions News
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Tuesday, 9 April 2019

WAEC Book Keeping 2019 Questions and Answers | Obj/Theory Expo - May/June

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*Book Keeping*

1a) A trading account is an account which is prepared to determine the gross profit or gross loss of a business.

2a) Discount is an allowance or
concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.

2b) 
-i-    • It lower operational business costs.
       • Increases purchasing power.
       • Improves goodwill. 
       • Higher consumer sales
-ii-   • Increases cash flow. 
       • Helps Get the Sale and Spread the News
       • Attracts New Customers
       • Provides Lower Card Processing Fees


(2a)
Discount is an allowance or concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can also be referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.

(2bi)
A trade discount is a routine reduction from the regular,
established price of a product. The use of trade
discounts allows a company to vary the final price
based on each customer's volume or status.

(2bii)
(1) Cash discount is an allowance or concession given by the seller to the buyer. 
(2) This discount is offered to encourage the buyer for quick payment or settlement.
(3) It is allowed for immediate payment of cash or payment within a short period.
(4) The cash discount is normally shown in the quotation and invoice . It is deductible from the total price and the buyer is requested to pay only to the net amount.



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