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JAMB Principles of Accounts 2005 Question 22

Question 22

Control Accounts

Given:
Purchases ledger balance ₦4 000
Purchases for the period ₦50 000
Cash refunded by suppliers ₦290
Cheques paid to suppliers ₦42 300
Returns outwards ₦2 000
Discount received from suppliers ₦400
The balance of the purchases ledger control account is

  1. A.₦10 390
  2. B.₦9 990
  3. C.₦9 590
  4. D.₦9 010
Show the answer and explanation

Answer: C (₦9 590)

Explanation

Credits: 4 000 + 50 000 + refunds 290 = ₦54 290. Debits: 42 300 + 2 000 + 400 = ₦44 700. Balance = 54 290 − 44 700 = ₦9 590.