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-Dec 2013 Question 3 (Plot Co)
(b) Calculate net value in dollar to Plot Co of accepting early settlement discount for Product Q
trade payables after discount = purchase $456,000 x 99% x 30/365
-Sept 2016 Question 31 (Nesud Co)
trade payables after discount = purchase $1,500,000 x 30/360 , which is without multiplying by after-discount rate (95%)
Both of the questions are same cases, why only one of them use after discount purchase amount like Plot Co? Or there is an error ?
Please help. Thx
If you watched my free lectures you would know that there are arguments for doing both things in relation to the discount, and that the examiner is not consistent (as in the two questions you mention).
However, because there are arguments for doing both, the examiner has made it clear that either would get full marks.
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