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JAMB Principles of Accounts 2000 Question 1

Question 1

Control Accounts

On November 1, 1998, Zaria Holdings owed ₦13,600 in respect of a creditor. On November 15, it purchased goods worth ₦69,000 and paid a cheque of ₦51,600. On November 29, one of the Holdings' cheques worth ₦3,000 was returned while the creditor granted ₦1,500 discount. The amount owed by Zaria Holdings as at November 29 is

  1. A.₦32,500
  2. B.₦32,000
  3. C.₦31,000
  4. D.₦29,500.
Show the answer and explanation

Answer: A (₦32,500)

Explanation

Owed = 13,600 + 69,000 − 51,600 + 3,000 (cheque returned, so still owed) − 1,500 discount = ₦32,500.