JAMB Accounting 2007 Objective — Question 26

Question 26 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Sales ledger Control Account (Extract): Bal. b/d 18,400; Sales ?; Bad debt written off 1,500; Discount allowed 500; Cheque received from debtors 25,000; Cash received from debtors 10,000; Bal. c/d ?. If the discount allowed is 2.5% of sales, calculate the closing balance in the sales ledger account.

A. 1,400Correct
B. 6,600
C. 16,600
D. 18,600

Explanation

Sales = 100 x #500 / 2.5 = #20,000. Total debit = 18,400 + 20,000 = 38,400. Total credit = 1,500+500+25,000+10,000 = 37,000. Closing balance = 38,400 - 37,000 = #1,400.

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