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

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

More questions from this paper

Danho has every sitting for this paper, with your progress tracked question by question, offline.