Waec Model Questions Vol1 2023 Financial Accounting Question 8

Practice essay / theory question 8 from the 2023 Waec Model Questions Vol1 Financial Accounting examination. This question covers Control Accounts .

Waec Model Questions Vol1 2023 Financial Accounting Essay / Theory
Topic: Control Accounts
Question 8 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • essay

XYZ Enterprises maintains a Sales Ledger Control Account (SLCA) and a Purchases Ledger Control Account (PLCA) for the year ended 31 December 2023. The following information is available:

Question Parts

( a )
Opening balance of the SLCA on 1 January 2023 was a debit of ₦ 85,000.
( b )
During 2023, the following transactions relating to the sales ledger occurred:
( ) Credit sales of ₦ 420,000.
( ) Cash received from customers totalling ₦ 378,500.
( ) Returns inwards (sales returns) of ₦ 12,000.
( ) Discounts allowed to customers amounting to ₦ 5,500.
( c )
Opening balance of the PLCA on 1 January 2023 was a credit of ₦ 63,000.
( d )
During 2023, the following transactions relating to the purchases ledger occurred:
( ) Credit purchases of ₦ 310,000.
( ) Cash payments to suppliers totalling ₦ 260,400.
( ) Returns outwards (purchase returns) of ₦ 8,500.
( ) Trade discounts received amounting to ₦ 4,200.
( e )
Prepare the Sales Ledger Control Account and the Purchases Ledger Control Account for the year ended 31 December 2023, showing the closing balances.
( f )
Discuss two advantages of using control accounts in the double‑entry bookkeeping system.

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About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 8. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

The question covers Control Accounts .

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