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JAMB Principles of Accounts 2004 Question 17

Question 17

Control Accounts

Use the information below to answer questions 17 and 18.
Opening balance ₦10,640
Purchases ₦26,912
Returns inwards ₦492
Returns outwards ₦810
Cash discount received ₦1,348
Cash discount allowed ₦1,560
Cash paid to suppliers ₦20,808
At the year end, the purchases ledger showed a debit balance of ₦108.
The total on the debit side of the purchases ledger control account will be

  1. A.₦22,966
  2. B.₦22,156
  3. C.₦21,834
  4. D.₦21,054
Show the answer and explanation

Answer: A (₦22,966)

Explanation

Debit entries are returns outwards 810 + discount received 1,348 + cash paid 20,808 = ₦22,966 (before the closing balance). Returns inwards and discount allowed belong to the sales ledger.