2019 WAEC BOOK KEEPING EXPO/RUNS | REAL BOOK KEEPING OBJ & THEORY ANSWERS | MAY/JUNE EXPO

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*Book Keeping*

1a) A trading account is an account which is prepared to determine the gross profit or gross loss of a business.

2a) Discount is an allowance or

concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.

Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.

2b) 

-i-    • It lower operational business costs.

       • Increases purchasing power.

       • Improves goodwill. 

       • Higher consumer sales

-ii-   • Increases cash flow. 

       • Helps Get the Sale and Spread the News

       • Attracts New Customers

       • Provides Lower Card Processing Fees

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