Mrs. Folake operates a hardware enterprise in Ibadan and keeps single-entry accounting rec… — JAMB UTME

Mrs. Folake operates a hardware enterprise in Ibadan and keeps single-entry accounting records. For the financial year ended 31 December 2025, the following ledger details regarding her trade debtors were extracted:

- Debtors balance at 1 January 2025: $\text{₦}45,000$
- Cash and cheques received from debtors: $\text{₦}198,000$
- Discount allowed: $\text{₦}4,500$
- Bad debts written off: $\text{₦}2,500$
- Returns inwards: $\text{₦}3,000$
- Dishonoured cheques: $\text{₦}6,000$
- Debtors balance at 31 December 2025: $\text{₦}52,000$

What was the total amount of credit sales for the year?

₦209,000Answer
B
₦221,000
C
��204,500
D
₦205,000

Answer

The total amount of credit sales for the year is ₦209,000.

To find missing credit sales, construct the Sales Ledger (Debtors) Control Account. The total on the credit side comprises cash received (₦198,000), discount allowed (₦4,500), bad debts (₦2,500), returns inwards (₦3,000), and closing debtors balance (₦52,000), totaling ₦260,000. Deducting the debit side components—opening balance (₦45,000) and dishonoured cheques (₦6,000), totaling ₦51,000—leaves ₦209,000 as credit sales.

Step-by-Step Solution

Identify the items that belong on the credit side of the Sales Ledger (Debtors) Control Account

Credit side items: Cash/Cheques received (₦198,000) + Discount allowed (₦4,500) + Bad debts written off (₦2,500) + Returns inwards (₦3,000) + Closing balance (₦52,000) = ₦260,000.

The credit side records reductions in trade debtors outstanding plus the remaining year-end balance.

Identify the existing debit side items of the Sales Ledger Control Account

Debit side items (excluding credit sales): Opening balance (₦45,000) + Dishonoured cheques (₦6,000) = ₦51,000.

Dishonoured cheques increase debtors' liability and must be posted to the debit side alongside the opening balance.

Calculate the missing figure for Credit Sales

Credit Sales = ₦260,000 - ₦51,000 = ₦209,000.

Balancing the control account gives total credit sales as the balancing figure on the debit side.

Key Concept

Debtors Control Account for Missing Credit Sales

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