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JAMB Principles of Accounts 2008 Question 25

Question 25

Control Accounts

Discount allowed as represented in the control account appears on the

  1. A.credit side of the purchases control account
  2. B.debit side of the purchases control account
  3. C.credit side of the sales control account
  4. D.debit side of the sales control account
Show the answer and explanation

Answer: C (credit side of the sales control account)

Explanation

Discount allowed reduces what debtors owe, so it is credited in the sales ledger (debtors) control account.