Neco 2025 Financial Accounting Question 16

Alpha Ltd. recorded the following transactions in its purchases journal for March: - Purchased goods costing \(₦120,000\) on credit, terms \(2/10, n/30\). - Returned goods costing \(₦8,000\) within the discount period. - Received a cash discount of \(2\%\) on the remaining balance of the purchase. In the sales journal, the company recorded cash sales of \(₦200,000\) and credit sales of \(₦150,000\), terms \(3/15, n/45\). No returns were recorded. The cash book shows an opening cash balance of \(₦40,000\) and a closing cash balance of \(₦130,240\). Assuming that all cash receipts and payments during the month relate only to the above transactions, determine the amount of cash paid for the purchases in March.