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WAEC Financial Accounting 2017 Question 20

Question 20

Control Accounts

Use the following information: Sales ledger balances 01/06/12 D9,000; 30/06/12 D30,000. Total for the month: Cash sales D10,000; Returns inwards D3,000; Cheque dishonoured D4,000.
The credit sales for the month is

  1. A.D36,000.
  2. B.D31,000.
  3. C.D20,000.
  4. D.D10,000.
Show the answer and explanation

Answer: C (D20,000.)

Explanation

Closing debtors 30,000 = opening 9,000 + credit sales + dishonoured cheque 4,000 - returns 3,000, so credit sales = 30,000 + 3,000 - 9,000 - 4,000 = D20,000.