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WAEC Financial Accounting 2016 Question 24

Question 24

Incomplete Records

Use the following information: Cash purchase D29,641; Creditors 1/1/14 D2,473; Creditors 31/12/14 D3,117; Cash paid to creditors D127,345; Discount received D4,211.
The credit purchases is

  1. A.D 161,841.
  2. B.D 156,986.
  3. C.D 134,673.
  4. D.D 132,200.
Show the answer and explanation

Answer: D (D 132,200.)

Explanation

Credit purchases = cash paid 127,345 + discount 4,211 + closing creditors 3,117 - opening creditors 2,473 = D132,200.