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Difficulty: MediumDebtors and Creditors Control Accounts for Missing Figures

Bello, a retail merchant who keeps single-entry records, extracted the following details regarding his trade debtors for the year ended 31 December 2025:

- Debtors balance at 1 January 2025: ₦52,000₦52,000
- Cash received from debtors: ₦185,000₦185,000
- Discount allowed to customers: ₦4,500₦4,500
- Bad debts written off: ₦3,200₦3,200
- Returns inwards: ₦2,800₦2,800
- Customer cheques dishonoured: ₦6,000₦6,000
- Contra set-off against purchases ledger: ₦1,500₦1,500
- Debtors balance at 31 December 2025: ₦64,000₦64,000

What is the value of total credit sales for the year?

  1. ₦203,000Answer
  2. B
    ₦215,000
  3. C
    ₦194,000
  4. D
    ₦197,400

Answer

The total credit sales for the year is ₦203,000.
Reconstructing the Debtors Control Account requires placing items that increase debtors on the debit side (opening balance ₦52,000₦52,000, dishonoured cheques ₦6,000₦6,000, and credit sales XX) and items that reduce debtors on the credit side (cash received ₦185,000₦185,000, discount allowed ₦4,500₦4,500, bad debts ₦3,200₦3,200, returns inwards ₦2,800₦2,800, contra set-off ₦1,500₦1,500, and closing balance ₦64,000₦64,000). Summing the credit side gives ₦261,000₦261,000. Subtracting known debits (₦58,000₦58,000) gives the credit sales of ₦203,000₦203,000.

Step-by-Step Solution

1
Identify and sum all credit side items of the Debtors (Sales Ledger) Control Account.
Credit side sum = Cash received (₦185,000₦185,000) + Discount allowed (₦4,500₦4,500) + Bad debts (₦3,200₦3,200) + Returns inwards (₦2,800₦2,800) + Contra set-off (₦1,500₦1,500) + Closing balance (₦64,000₦64,000) = ₦261,000₦261,000.
These transactions reduce the total amount owed by debtors or represent the closing balance remaining.
2
Identify known debit side items of the Debtors Control Account.
Known debit side sum = Opening balance (₦52,000₦52,000) + Dishonoured cheques (₦6,000₦6,000) = ₦58,000₦58,000.
The opening balance and dishonoured cheques increase the debt owed by customers.
3
Calculate the missing Credit Sales figure by taking the difference between total credit side items and known debit side items.
Credit Sales = ₦261,000−₦58,000=₦203,000₦261,000 - ₦58,000 = ₦203,000.
The Debtors Control Account must balance; the balancing figure on the debit side represents credit sales for the period.

Key Concept

Debtors Control Account for Missing Figures
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Topics

Debtors and Creditors Control Accounts for Missing Figures

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