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JAMB Principles of Accounts 1995 Question 22

Question 22

Control Accounts

The purchases ledger control account of a company had an opening balance of ₦45 600 credit and closing balance of ₦72 600 credit. The company made payments of ₦437 000 to credit suppliers during the period; and had discount received of ₦18 600 on this account. What were the credit purchases for the period?

  1. A.₦509 600
  2. B.₦482 600
  3. C.₦428 600
  4. D.₦418 400.
Show the answer and explanation

Answer: B (₦482 600)

Explanation

Credit purchases = payments 437 000 + discount received 18 600 + closing 72 600 − opening 45 600 = ₦482 600.