Neco 2017 Financial Accounting Question 8

During the month of April 2024, Greenfield Trading kept separate subsidiary ledgers for its debtors and creditors. The following summary information is available: **Sales Ledger (Debtors) Summary** - Opening balance (debit) ₦ 420,000 - Credit sales recorded in the sales journal ₦ 560,000 - Cash sales recorded in the cash book ₦ 140,000 - Sales returns (goods returned by customers) ₦ 32,000 (debit) - Trade discounts allowed ₦ 18,000 (debit) - Receipts from debtors (cash and bank) ₦ 460,000 (credit) - Closing balance (debit) ? **Purchases Ledger (Creditors) Summary** - Opening balance (credit) ₦ 210,000 - Credit purchases recorded in the purchases journal ₦ 380,000 - Cash purchases recorded in the cash book ₦ 90,000 (debit) - Purchase returns (goods returned to suppliers) ₦ 24,000 (credit) - Trade discounts received ₦ 12,000 (credit) - Payments to creditors (cash and bank) ₦ 340,000 (debit) - Closing balance (credit) ? Using the above data, answer the following: a) Prepare the Sales Ledger Control Account for April 2024 and state the closing balance. b) Prepare the Purchases Ledger Control Account for April 2024 and state the closing balance. c) Explain two advantages of maintaining control accounts in a double‑entry accounting system.