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WAEC Financial Accounting 1991 (August) Question 6

Question 6

Control Accounts

Use the following information:
Balance brought forward: ₦500 Cr
Amount paid to suppliers: ₦12,000
Returns outwards: ₦150
Balance carried forward: ₦650 Cr

What is the value of purchases?

  1. A.₦12,800
  2. B.₦12,650
  3. C.₦12,300
  4. D.₦12,150
  5. E.₦12,000.
Show the answer and explanation

Answer: C (₦12,300)

Explanation

Purchases = payments 12,000 + returns 150 + closing 650 − opening 500 = ₦12,300.