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JAMB Principles of Accounts 2005 Question 21

Question 21

Control Accounts

The items that are contained in the bought ledger control account are

  1. A.discount allowed, bad debts and purchases
  2. B.dishonoured cheques, returns inwards and sales
  3. C.returns outwards, bad debts and purchases
  4. D.discount received, returns outwards and purchases
Show the answer and explanation

Answer: D (discount received, returns outwards and purchases)

Explanation

The bought (purchases) ledger control account deals with suppliers: purchases, returns outwards and discount received. Bad debts, sales and discount allowed belong to the sales ledger.