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JAMB Principles of Accounts 1994 Question 22

Question 22

Control Accounts

Beginning and ending accounts receivable balances were ₦8 000 and ₦15 000 respectively. If collections from customers during the period were ₦36 000, then total sales on account would be

  1. A.₦23 000
  2. B.₦29 000
  3. C.₦36 000
  4. D.₦43 000.
Show the answer and explanation

Answer: D (₦43 000.)

Explanation

Credit sales = collections + closing debtors − opening debtors = 36 000 + 15 000 − 8 000 = ₦43 000.