Commerce May/June 2015

Question 8

  1. (i)         COD;
  2. (ii)        CIF;
    (iii)       FOB;
    (iv)       E. and O. E.
  1. The sale of consumer goods costing N100,000 attracts a cash discount

of  7½%  and a quantity discount of 5%.


Most candidates performed poorly in this question. The procedure for calculating quantity and cash discount is as follows:

  1. Calculate the quantity discount first;
  2. Deduct the quantity discount from the invoice price;
  3. Then calculate the cash discount;
  4. Deduct the values of the two discounts to get the net amount payable.