JAMB Accounting 2007 Objective — Question 36

Question 36 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

The purchased ledger control account showed a credit balance of #525,000 on April 30, 2006. This amount shows

A. what the debtors of a business enterprise owed the business
B. the total amount which each debtor owed the business
C. what a business enterprise owed its creditorsCorrect
D. the total amount which a business enterprise owed each creditor

Explanation

The purchases ledger (creditors) control account credit balance represents the total amount the business owes to its creditors as at that date.

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