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WAEC Financial Accounting 2020 Question 47

Question 47

Control Accounts

Discount allowed ₦2,000; Bad debts ₦1,000; Cheque received from customers ₦24,000; Returns inwards ₦500; Sales ledger balance at the beginning ₦2,000. The amount of sales is

  1. A.₦29,500.
  2. B.₦26,000.
  3. C.₦25,500.
  4. D.₦24,000.
Show the answer and explanation

Answer: C (₦25,500.)

Explanation

With no closing balance, sales = 2,000 + 1,000 + 24,000 + 500 − 2,000 opening = ₦25,500.