passwella.
Menu

JAMB Principles of Accounts 2007 Question 43

Question 43

Control Accounts

Given:
Sales Ledger
Bal. b/d ₦20 000 | Sales returns ₦10 000
Sales ₦40 000 | Discount allowed ₦1 000
| Bal. c/d ₦?
If cheques of ₦40 000 were received but a cheque of ₦8 000 was dishonoured, the amount owed was

  1. A.₦9 000
  2. B.₦20 000
  3. C.₦1 000
  4. D.₦17 000.
Show the answer and explanation

Answer: D (₦17 000.)

Explanation

Net cash received = 40 000 − 8 000 = ₦32 000. Owed = 20 000 + 40 000 − 10 000 − 1 000 − 32 000 = ₦17 000.