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WAEC Financial Accounting 2017 Question 26

Question 26

Control Accounts

The purpose of keeping Sales and Purchases Ledger Control Account is to

  1. A.match credit sales and credit purchases.
  2. B.equate debtors' balance to creditors balance.
  3. C.verify total debtors and total creditors balances.
  4. D.determine cash sales and cash purchases.
Show the answer and explanation

Answer: C (verify total debtors and total creditors balances.)

Explanation

Control accounts check the accuracy of the debtors' and creditors' ledgers by giving their totals.