passwella.
Menu

WAEC Financial Accounting 2023 Question 4

Question 4

Incomplete Records

Use the following information to answer questions 4 and 5.
Trade creditors (31/12/2020): $4,000
Paid for purchases in 2021: Cheques $110,000
Carriage inwards: $1,000
Trade creditors (31/12/2021): $6,000
The total purchases in 2021 is

  1. A.$121,000.
  2. B.$117,000.
  3. C.$113,000.
  4. D.$111,000.
Show the answer and explanation

Answer: C ($113,000.)

Explanation

Credit purchases = 110,000 + 6,000 − 4,000 = 112,000; adding carriage inwards of 1,000 gives $113,000.