Pencils, Notebooks and Coloured Paper

Mr Wenham says “your pencils, notebooks and coloured paper cost £1.70”.  Daniel says I bought 2 pencils at 2 p each, and 5 pencils at 4 p each and 8 notebooks and 12 sheets of coloured paper.

I don’t remember the prices, but the bill can’t be £1.70.  Why is Daniel correct?