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JAMB Principles of Accounts 2001 Question 20

Question 20

Control Accounts

Use the information below to answer questions 19 and 20.
(₦)
Purchases ledger opening balances 4,000
Sales ledger opening balances 6,000
Credit purchases during the year 25,000
Discounts allowed 1,000
Returns inwards 2,000
Credit sales during the year 10,000
Returns outwards 6,000
What is the purchases ledger balance?

  1. A.₦4,000
  2. B.₦23,000
  3. C.₦24,000
  4. D.₦29,000.
Show the answer and explanation

Answer: B (₦23,000)

Explanation

Purchases ledger = 4,000 + 25,000 − returns outwards 6,000 = ₦23,000.