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JAMB Principles of Accounts 1994 Question 10

Question 10

Double Entry and the Ledger

Account of Tanko Nig. Ltd.
Dr: 1/10 Bal. b/f ₦5 000; 5/10 Sales ₦10 000
Cr: 2/10 Cash ₦3 000; 15/10 Bank ₦6 500
What is the closing balance of the account shown above?

  1. A.₦5 000
  2. B.₦6 500
  3. C.₦5 500
  4. D.₦15 000.
Show the answer and explanation

Answer: C (₦5 500)

Explanation

Debit side = 5 000 + 10 000 = ₦15 000; credit side = 3 000 + 6 500 = ₦9 500. Balance = 15 000 − 9 500 = ₦5 500 (debit).