JAMB Principles of Accounts 1998 Question 20

Question 20

Control Accounts

The balance on a purchases ledger control account represents the

  1. A.present amount that a business owes its suppliers at date
  2. B.total credit available to the business at the end of the year to be utilized in future
  3. C.total credit the business enjoyed for the particular year from its suppliers
  4. D.total credit owed the business by its customers.
Show the answer and explanation

Answer: A (present amount that a business owes its suppliers at date)

Explanation

The purchases ledger control balance is the total owed to credit suppliers at that date.