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JAMB Principles of Accounts 2006 Question 4

Question 4

Control Accounts

The objective of the purchase ledger control account is to establish the

  1. A.credit purchases
  2. B.net profit
  3. C.total purchases
  4. D.gross profit.
Show the answer and explanation

Answer: A (credit purchases)

Explanation

The purchase ledger control account summarises credit purchases and payments to suppliers, giving the total owed to creditors.