A purchase invoice shows 10 items priced at £240 less trade discount of 20%. A cash discount of
2)5% is allowed if payment is made within 30 days. Which figure will be entered as a purchase in the books?

Question

Quizplus · Accepted Answer

The purchase price after a 20% trade discount on £2400 (10 items at £240 each) is £1920. The cash discount is not deducted when recording the purchase.

A Purchase Invoice Shows 10 Items Priced at £240 Less