Day: March 6, 2024

A car has a list price of £23,500, but the garage gives Alex Trading plc a 10% trade discount.

In settlement the garage accepts a cheque for £18,000, together with an old company car.

The amount to be capitalised by Alex Trading plc for the new car is?

Select ONE answer:

1. £16,200
2. £18,000
3. £21,150
4. £23,500

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £23,500 × 90% = £21,150
4. Not correct

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