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JAMB Principles of Accounts 2010 Question 21

Question 21

Control Accounts

Sales Ledger Control Account
Debit: Balance b/d ₦87 000; Credit sales ?; Bills receivable dishonoured ₦58 000; Dishonoured cheques ₦50 000
Credit: Discount allowed ₦40 000; Bills receivable ₦50 000; Cash receivable ₦280 000; Returns inwards ₦30 000; Balance c/d ?
Credit sales is given at 160% of cash received.
What is the balance c/d?

  1. A.₦333 000
  2. B.₦234 000
  3. C.₦343 000
  4. D.₦243 000
Show the answer and explanation

Answer: D (₦243 000)

Explanation

Credit sales = 160% × 280 000 = ₦448 000. Debit total = 87 000 + 448 000 + 58 000 + 50 000 = ₦643 000. Credits = 40 000 + 50 000 + 280 000 + 30 000 = ₦400 000. Balance c/d = ₦243 000.