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JAMB Principles of Accounts 2000 Question 17

Question 17

Control Accounts

Amin Ltd. Creditors Ledger Control Account (Extracts) (₦)
Beginning control account balances: Debit 32,000; Credit 61,000
Purchases during the year: Cash 30,000; Credit 60,000
Payment to suppliers: Cash 13,000; Cheque 29,000
Debtor's contra 6,000
The closing control account balance is

  1. A.₦41,000
  2. B.₦65,000
  3. C.₦71,000
  4. D.₦77,000.
Show the answer and explanation

Answer: A (₦41,000)

Explanation

Credit side: 61,000 + credit purchases 60,000 = 121,000. Debit side: 32,000 + 13,000 + 29,000 + 6,000 = 80,000. Balance = ₦41,000 (cash purchases do not pass through creditors).