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WAEC Financial Accounting 1995 Question 25

Question 25

Control Accounts

Use the following Debtors Control Account:
Debit side: Balance b/d ₦8,000; 'X' ₦12,000
Credit side: Bank 'Y'; Discount ₦200; Balance c/d ₦3,000

'X' refers to

  1. A.stock
  2. B.returns
  3. C.discount
  4. D.sales
  5. E.purchases.
Show the answer and explanation

Answer: D (sales)

Explanation

The debit entry adding to debtors is credit sales.