Waec Model Questions Vol1 2024 Financial Accounting Question 11

Practice objective / multiple choice question 11 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 11 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

ABC Traders maintains a Purchases Control Account. The credit side of the control account shows total purchases of ₦115,000. The subsidiary ledger contains the following credit balances for three suppliers: Supplier A - ₦50,000, Supplier B - ₦35,000, Supplier C - ₦28,000. A debit entry of ₦6,000 for purchase returns is recorded in the control account but has not been posted to the subsidiary ledger. (i) Determine the net credit balance of the Purchases Control Account after the returns. (ii) Assuming the returns should be allocated to the three suppliers in proportion to their original purchase amounts, calculate the amount that must be deducted from each supplier's balance.

Answer Options

A. Net credit balance = ₦108,000; deductions - A: ₦1,600, B: ₦1,120, C: ₦880
B. Net credit balance = ₦110,000; deductions - A: ₦1,800, B: ₦1,260, C: ₦1,040
C. Net credit balance = ₦109,000; deductions - A: ₦2,000, B: ₦1,500, C: ₦500
Correct Answer D. Net credit balance = ₦109,000; deductions - A: ₦1,770, B: ₦1,239, C: ₦991
Correct Answer
D
Correct Option:
Net credit balance = ₦109,000; deductions - A: ₦1,770, B: ₦1,239, C: ₦991

About This Question

This is Waec Model Questions Vol1 2024 Financial Accounting Question 11. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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