JAMB Principles of Accounts 2003 Question 20

Use the information below to answer questions 20 and 21.
Purchases ledger control account
Debit (₦): Discount received 1 000; Bills payable 1 500; Cash paid to suppliers 8 000; Returns outwards 3 000; Balance c/d ?
Credit (₦): Balance b/d 2 900; Credit purchases ?; Bills payable dishonoured 1 600; Dishonoured cheques 2 000
Credit purchases are always put at 150% of the total cash paid to suppliers
Calculate the closing balance of the ledger account

1. A.₦6 900
2. B.₦6 400
3. C.₦5 000
4. D.₦4 000