# IGCSE Accounting Paper-1: Specimen Questions with Answers 152 - 154 of 214

## Question number: 152

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### Write in Short

Next limited ordered 300 printing components from Jainson. The price of each component was \$12.40. Jainson allowed a trade discount of 5%.

Calculate the total of the invoice Next limited received.

### Explanation

\$3534

Total components ordered by Next limited = 300

The cost of each component is = \$12.40

The total values of printing component are =

The invoice amount is

## Question number: 153

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MCQ▾

### Question

Anwar sells goods with a list price of \$6000 on cash to John. Anwar offers the following discounts.

Cash discount 20%

### Choices

Choice (4) Response

a.

\$6000

b.

\$5400

c.

\$5000

d.

\$4800

b.

### Explanation

Cash discount is allowed on the purchase of goods. Trade credit is allowed when payment is made with in the specified period of time. Cash discount is allowed in order to encourage the customers to pay amount before expiry of the credit period.

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