Bece Model Questions Vol1 2023 Business Studies Question 3

Practice practical question 3 from the 2023 Bece Model Questions Vol1 Business Studies examination. This question covers Sales Invoice, Discount, VAT, Costing, Profit Calculation .

Bece Model Questions Vol1 2023 Business Studies Practical

Topics: Sales Invoice Discount VAT Costing Profit Calculation

Question 3 BECE_MODEL_QUESTIONS_VOL1 • 2023 • BUSINESS_STUDIES • practical

A small retail shop sells three items as shown in the sales order below. Item Quantity Unit Price (₦) A 40 250 B 25 480 C 15 1,200 The shop applies a 5 % discount on the total purchase when the total before discount exceeds ₦20,000 and then adds 7.5 % VAT on the amount after discount. The cost price per unit of the items are: Item Cost Price per unit (₦) A 150 B 300 C 900 A draft invoice prepared by the shop assistant shows the following statements: (i) VAT was calculated on the discounted amount. (ii) The discount was applied to each line item instead of the total. (iii) The total payable was written as ₦28,950. Using the information above, answer the questions that follow.

Question Parts

( a )

Prepare a sales invoice showing for each item: quantity, unit price, line total, the total before discount, the discount amount, the net amount after discount, the VAT amount and the final amount payable.

( b )

Using the cost prices given, calculate the gross profit on this transaction (ignore VAT for profit calculation).

( c )

Identify which of the three statements (i)–(iii) in the draft invoice are actually errors and state the correct total payable.

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About This Question

This is Bece Model Questions Vol1 2023 Business Studies Question 3. It is one of the practical questions from the 2023 Bece Model Questions Vol1 Business Studies examination.

The question covers Sales Invoice, Discount, VAT, Costing, Profit Calculation .

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