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JAMB Principles of Accounts 2002 Question 38

Question 38

Control Accounts

In a control account, discount received is found on the

  1. A.debit side of the purchases ledger control account
  2. B.debit side of the sales ledger control account
  3. C.credit side of the purchases ledger control account
  4. D.credit side of the sales ledger control account.
Show the answer and explanation

Answer: A (debit side of the purchases ledger control account)

Explanation

Discount received reduces what we owe suppliers, so it is debited in the purchases ledger control account.