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JAMB Principles of Accounts 1997 Question 25

Question 25

Incomplete Records

The total of the creditors at the beginning of the year was ₦4 600 and at the end of the year ₦5 250. During the year, ₦26 500 was paid to suppliers and ₦130 was received in discounts from these suppliers. The purchases for the year would be

  1. A.₦26 630
  2. B.₦27 038
  3. C.₦27 150
  4. D.₦27 280
Show the answer and explanation

Answer: D (₦27 280)

Explanation

Purchases = payments 26 500 + discounts 130 + closing creditors 5 250 − opening creditors 4 600 = ₦27 280.