WAEC Accounting 2020 Paper

Concept:Trade discount is deducted first from the list price, and returned goods are also valued after this trade discount. The cash discount is then allowed on the balance actually payable on the due date.Explanation:List price of goods $= \mathrm{Le}\,50,000$Trade discount $= 3\% \times \mathrm{Le}\,50,000 = \mathrm{Le}\,1,500$Invoice value after trade discount $= \mathrm{Le}\,50,000 - \mathrm{Le}\,1,500 = \mathrm{Le}\,48,500$Returned goods were worth $\mathrm{Le}\,8,000$ at list price.Return value after trade discount $= \mathrm{Le}\,8,000 - (3\% \times \mathrm{Le}\,8,000) = \mathrm{Le}\,7,760$Balance due before cash discount $= \mathrm{Le}\,48,500 - \mathrm{Le}\,7,760 = \mathrm{Le}\,40,740$Since payment is made on the due date, cash discount $= 10\% \times \mathrm{Le}\,40,740 = \mathrm{Le}\,4,074$Amount paid $= \mathrm{Le}\,40,740 - \mathrm{Le}\,4,074 = \mathrm{Le}\,36,666$The printed option D is $\mathrm{Le}\,36,660$, but the correct computed amount is $\mathrm{Le}\,36,666$.Answer:Option D is the intended answer, with the correct amount as $\mathrm{Le}\,36,666$.