On November 1, 1998, Zaria Holdings owed N13,600 in respect of a creditor. On November 15, it purchases goods worth N69,000 and paid a cheque of N51,600. On November 29, one of the Holdings' cheques worth N3,000 was returned while the creditor granted a N1,500 discount. The amount owed by Zaria Holdings as at November 29 is?

  • A N32,500
  • B N32,000
  • C N31,000
  • D N29,500
jamb 2000accounting

The correct answer is A. N32,500

Let’s calculate the amount owed by Zaria Holdings step by step:

  1. On November 1, Zaria Holdings owed N13,600.
  2. On November 15, they purchased goods worth N69,000, so the total amount owed became N13,600 + N69,000 = N82,600.
  3. They then paid a cheque of N51,600, reducing the amount owed to N82,600 - N51,600 = N31,000.
  4. On November 29, one of their cheques worth N3,000 was returned, so the amount owed increased to N31,000 + N3,000 = N34,000.
  5. The creditor granted a discount of N1,500, so the final amount owed as at November 29 is N34,000 - N1,500 = N32,500.

So, the correct answer is N32,500. This represents the amount owed by Zaria Holdings as at November 29.

Previous question Next question