(I) Quantity discount = Quantity discount
Value x gross sales
5/100 x 100000 = N=5000
(II) Cash discount Cash discount value x gross sales value less quantity discount value
Gross Sales value less quantity discount
Value = N=(100,000 – 5000 = N=95000
Cash discount value = (5/100 x 95000)
= N=4750
(III) Net amount of money payable
by Customer = gross sales value - Qty
discount value - cash
discount value
= N=(100,000 – 5000 – 4750)
= N=90,250