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UI Post-UTME Financial Accounting 2025 (Model questions) Question 12

Question 12

Control Accounts

A company had the following transactions for the month: Credit sales: ₦350,000 Cash received from debtors: ₦280,000 Discount allowed: ₦14,000 Bad debts written off: ₦6,000 Returns inward: ₦10,000 Opening debtors: ₦60,000. Which of the following are entries in the DEBIT side of the debtors control account?
I. Opening balance ₦60,000
II. Credit sales ₦350,000
III. Returns inward ₦10,000
IV. Cash received ₦280,000

  1. A.I and II only
  2. B.I, II and III only
  3. C.III and IV only
  4. D.I, II, III and IV only
Show the answer and explanation

Answer: A (I and II only)

Explanation

The debit side holds what customers owe: the opening balance and credit sales. Returns, cash, discounts and bad debts reduce debtors and go on the credit side.