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WAEC Financial Accounting 1991 (August) Question 38

Question 38

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

Payments effected amount to

  1. A.₦10,800
  2. B.₦10,600
  3. C.₦10,500
  4. D.₦6,100
  5. E.₦5,800
Show the answer and explanation

Answer: E (₦5,800)

Explanation

Bank payments 6,100 less the 300 of cheques that were dishonoured = ₦5,800 actually paid.