Bece Model Questions Vol1 2017 Business Studies Question 2

Practice practical question 2 from the 2017 Bece Model Questions Vol1 Business Studies examination. This question covers Office Practice .

Bece Model Questions Vol1 2017 Business Studies Practical
Topic: Office Practice
Question 2 BECE_MODEL_QUESTIONS_VOL1 • 2017 • BUSINESS_STUDIES • practical

A small business owner is preparing an invoice for a client. The items to be billed are shown below: | Item | Quantity | Unit price (₦) | Calculation | |---------------------|----------|----------------|------------------------------------------| | Consultancy (hrs) | 5 | 4,000 | 5 × 4,000 = ₦20,000 | | Installation (hrs) | 3 | 5,500 | 3 × 5,500 = ₦16,500 | | Cable (metres) | 20 | 250 | 20 × 250 = ₦5,000 | | Connector (pieces) | 15 | 150 | 15 × 150 = ₦2,250 | | Delivery charge | – | – | Fixed ₦2,000 | The client is eligible for a 5 % early‑payment discount on the total amount before VAT. VAT is charged at 7.5 % on the amount after the discount has been applied. Using the information above, answer the following:

Question Parts

( a )
Calculate the subtotal (total of all items before discount and VAT).
( b )
Determine the discount amount and the amount after discount.
( c )
Calculate the VAT payable and the final amount payable (including the delivery charge).
( d )
List three common errors that could occur when preparing such an invoice.

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About This Question

This is Bece Model Questions Vol1 2017 Business Studies Question 2. It is one of the practical questions from the 2017 Bece Model Questions Vol1 Business Studies examination.

The question covers Office Practice .

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