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WAEC Financial Accounting 2009 Question 47

Question 47

Double Entry and the Ledger

Use this information to answer questions 47 and 48.
Abu, a debtor to Dania, owed ¢10,500 at the start of the month. He paid cash of ¢40,005 during the month and received additional credit sales of ¢20,000.

Abu's balance at the end of the month is

  1. A.¢30,505 cr.
  2. B.¢9,505 cr.
  3. C.¢9,505 dr.
  4. D.¢30,500 dr.
Show the answer and explanation

Answer: B (¢9,505 cr.)

Explanation

10,500 + 20,000 − 40,005 = −9,505: Abu has paid more than he owes, so his account has a credit balance of ¢9,505.