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WAEC Financial Accounting 2012 Question 31

Question 31

Incomplete Records

If creditors at 1/1/10 were Le 3,000; creditors at 31/12/10 Le 5,500 and payments to creditors Le 29,000. The purchases figure for 2010 is

  1. A.Le 34,500
  2. B.Le 32,000
  3. C.Le 31,500
  4. D.Le 26,500
Show the answer and explanation

Answer: C (Le 31,500)

Explanation

Purchases = payments + closing creditors − opening creditors = 29,000 + 5,500 − 3,000 = Le 31,500.