Nneka, a wholesale trader who keeps incomplete accounting records, extracted the following… — JAMB UTME

Nneka, a wholesale trader who keeps incomplete accounting records, extracted the following information regarding her trade debtors for the financial year:

- Balance of trade debtors at 1 January: $\text{₦}45,000$
- Cash received from trade debtors during the year: $\text{��}120,000$
- Discount allowed to trade debtors: $\text{₦}5,000$
- Bad debts written off: $\text{₦}3,000$
- Balance of trade debtors at 31 December: $\text{₦}52,000$

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

A
₦119,000
B
₦130,000
₦135,000Cevap
D
₦121,000

Cevap

The total value of credit sales for the year is ₦135,000.

The value ₦135,000 is correctly computed using the Sales Ledger Control Account equation:

\text{Credit Sales} = \text{Cash Received} + \text{Discount Allowed} + \text{Bad Debts} + \text{Closing Debtors} - \text{Opening Debtors} = 120,000 + 5,000 + 3,000 + 52,000 - 45,000 = 135,000

Adım Adım Çözüm

Sum all items recorded on the credit side of the Sales Ledger (Debtors) Control Account

Total Credit Side = Cash Received (₦120,000) + Discount Allowed (₦5,000) + Bad Debts (₦3,000) + Closing Debtors (₦52,000) = ₦180,000

Credit entries reduce the trade debtors balance or represent the closing asset balance at the end of the accounting period.

Deduct the opening balance of debtors from the total credit side to find the missing credit sales figure

Credit Sales = ₦180,000 - Opening Debtors (₦45,000) = ₦135,000

Credit sales increase the debtors balance and represent the balancing figure on the debit side of the account.

Anahtar Kavram

Reconstructing the Sales Ledger Control Account to calculate missing credit sales from single-entry records.

Soru

Cevap

Adım Adım Çözüm

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