If goods are invoiced to the branch at cost and the invoice par value is ₦2 000 with 5%discount rate, can remitted to the head office is
Answer Details
If the goods are invoiced to the branch at cost, then the par value of the invoice is the cost price of the goods which is ₦2,000. The discount rate is 5%, which means the branch will get a discount of 5% on the cost price. The discount is calculated by multiplying the cost price by the discount rate:
Discount = ₦2,000 x 5% = ₦100
Therefore, the branch will pay ₦2,000 - ₦100 = ₦1,900 to the head office.
Hence, the remitted amount to the head office is ₦1,900.