Paper 2 · partnership dissolution

On dissolution of a partnership, trade receivables of $27 000 paid their accounts in full after receiving a 5% cash discount. Calculate the amount of cash received from trade receivables.

Model answer

25650

Also accepted: 25,650, $25,650, 25 650, $25 650

Explanation: Trade receivables settle their accounts by paying 95% of the amount owing after deducting the 5% discount:

27 000 x 95% =

25 650.

Derived from ZIMSEC Accounting Paper 2, specimen 2026, Q2

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