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WAEC Financial Accounting 1991 (August) Question 36

Question 36

Control Accounts

Bought Ledger Control Account
Debit side: Purchases returns ₦1,500; Bills payable ₦4,500; Bank ₦6,100; Discount allowed ₦200; Balance c/f ?; Total ₦15,800
Credit side: Balance b/f ₦5,000; Purchases ₦10,500; Cheques dishonoured ₦300; Total ₦15,800

Creditors at the end of the year amounted to

  1. A.₦10,500
  2. B.₦9,000
  3. C.₦5,000
  4. D.₦4,500
  5. E.₦3,500.
Show the answer and explanation

Answer: E (₦3,500.)

Explanation

Balance c/f = 15,800 − (1,500 + 4,500 + 6,100 + 200) = ₦3,500.