A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2013 · Q81 Mark

A trader buys inventory costing $6000. He is entitled to trade discount at 10% and cash discount of 5%. On the same day he discovers that he can only sell the inventory for $5000. Which amount should he record as the purchase price of the inventory?

A$5000

B$5130

C$5400

D$6000

✓ Correct answer

C: $5400

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2013 Paper 1 Variant 2, question 8.

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