Bece Model Questions Vol1 2017 Business Studies Question 3

Practice practical question 3 from the 2017 Bece Model Questions Vol1 Business Studies examination. This question covers Business Documents .

Bece Model Questions Vol1 2017 Business Studies Practical
Topic: Business Documents
Question 3 BECE_MODEL_QUESTIONS_VOL1 • 2017 • BUSINESS_STUDIES • practical

A retail shop sells three types of items as shown in the table below. The shop offers a 5% discount on the total amount before tax if the gross amount exceeds ₦50,000. Value Added Tax (VAT) is charged at 7.5% on the amount after discount. The shop prepares a sales invoice for a customer who purchases the items listed. | Item | Unit Price (₦) | Quantity | |------|----------------|----------| | A | 12,500 | 2 | | B | 8,750 | 3 | | C | 5,600 | 4 | Using the information above, answer the following:

Question Parts

( a )
Calculate the gross amount (total before any discount or tax).
( b )
Determine the discount amount, if any, and state the amount after discount.
( c )
Calculate the VAT payable on the discounted amount.
( d )
State the net amount payable by the customer (discounted amount + VAT).
( e )
Identify two possible sources of error that could occur when preparing this invoice and suggest a way to avoid each error.

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About This Question

This is Bece Model Questions Vol1 2017 Business Studies Question 3. It is one of the practical questions from the 2017 Bece Model Questions Vol1 Business Studies examination.

The question covers Business Documents .

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