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WAEC Financial Accounting 1991 (August) Question 37

Question 37

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

Net credit purchases for the year amounted to

  1. A.₦15,800
  2. B.₦15,500
  3. C.₦12,000
  4. D.₦10,500
  5. E.₦9,000.
Show the answer and explanation

Answer: E (₦9,000.)

Explanation

Net purchases = 10,500 − returns 1,500 = ₦9,000.