\(\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & &
\end{array}\)
Determine the discount allowed by Department A
- ₦5,000
-
₦9,375
- ₦5,625
- ₦8,000
The correct answer is: B
Explanation
To determine the discount allowed by Department B, the percentage of sales by Department B 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