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
Question 1 Report
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.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning