Calculate the cash balance after the discount?

By: |Published on: Dec 5|Categories: Accounting JAMB| 0 comments


A. N2760
B. N4 300
C. N6 200
D. N2.400

Correct Answer:

Option A – N2760

Explanation

cash balance = debit side of the cash column – credit side of cash column. Hence we have;

Discount allowed = 0.02 x 2000 = 40

Debit column = 3000 + 1000 + 2000 + 200 = 6200
6200 – 40 (cash discount) = 6160

credit column = 200 + 3000 + 200 = 3400

6160 – 3400 = 2760

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