WAEC Accounting 2012 Objective — Question 9

Question 9 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.

Use the following information to answer questions 9 and 10. 1/1/10 GH¢ / 31/12/10 GH¢ Stocks 1,400 / 1,900 Creditors 2,000 / 2,700 Cash paid to trade creditors GH¢8,000 Mark-up on cost of sales 20% The total purchases is

A. GH¢8,700Correct
B. GH¢7,300
C. GH¢6,000
D. GH¢5,300

Explanation

Creditors control A/c: Cr: Bal b/d 2,000 + Credit purchases (balancing figure) 8,700 = 10,700. Dr: Cash 8,000 + Bal c/d 2,700 = 10,700. Total purchases = ₦8,700.

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