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JAMB Accounting 2010 Objective — Question 46

Question 46 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

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46. Sundry debtors in the balance sheet of Onoja Bakery and Sons totalled #800,000. A provision of 2% was made for discount and 5% provision for bad and doubtful debts. Find the amount for sundry debtors after provision. A. 760,000 B. 744,800 C. 744,000 D. 784,000

  • A. 760,000
  • B. 744,800Correct
  • C. 744,000
  • D. 784,000

Explanation

Discount = 2% x N800,000 = N16,000. Bad debt = 5% x N(800,000-16,000) = N39,200. Value of sundry debtors = N800,000 - N16,000 - N39,200 = N744,800.

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