Bece Model Questions Vol1 2022 Business Studies Question 3

A small retail shop sold three items during the week of 1–7 June. The details of the sales are shown in the table below. All sales are subject to a 5% discount on the subtotal and a value‑added tax (VAT) of 7.5% on the discounted amount. The cost price of each item is also given. | Item | Quantity sold | Unit selling price (₦) | Unit cost price (₦) | |------|---------------|------------------------|---------------------| | A | 48 | 1,200 | 800 | | B | 35 | 2,500 | 1,800 | | C | 27 | 3,750 | 2,500 | Using the information above, answer the following: a) Prepare a sales invoice for the week showing, for each item, the subtotal, discount amount, VAT amount and total amount payable. b) State the total revenue earned by the shop for the week. c) Calculate the gross profit for the week (revenue minus cost of goods sold). d) Identify two possible sources of error that could arise when preparing the invoice.