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WAEC Financial Accounting 1991 (August) Question 22

Question 22

Incomplete Records

Use the following information: Acquah has sold goods on credit and received ₦2,000 in cash from debtors. At the end of the previous year ₦500 was owed by customers. The balance outstanding this year is ₦300.

Sales for the year amounted to

  1. A.₦2,300
  2. B.₦2,200
  3. C.₦2,000
  4. D.₦1,800
  5. E.₦1,700
Show the answer and explanation

Answer: D (₦1,800)

Explanation

Credit sales = cash received 2,000 + closing debtors 300 − opening debtors 500 = ₦1,800.