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JAMB Principles of Accounts 2002 Question 35

Question 35

Incomplete Records

Given:
(₦)
Cash purchases 25000
Trade creditors 45000
Opening balance of trade creditors 35000
Calculate the purchases for the period

  1. A.₦80,000
  2. B.₦35,000
  3. C.₦105,000
  4. D.₦70,000.
Show the answer and explanation

Answer: B (₦35,000)

Explanation

Credit purchases = closing creditors 45 000 − opening creditors 35 000 = 10 000 (no payments given). Total purchases = 25 000 + 10 000 = ₦35 000.