Question

SECTION B
6. The following balances have been extracted from the books of Johnson Ltd (sales ledger balances, purchases ledger balances, cash/cheques received and paid, discounts, bad debts, bills receivable/payable, etc. as at January and December 2014). You are required to prepare: (a) Total Debtors Account; (b) Total Creditors Account.

Accepted Answer

(a) Total Debtors Account: balancing all the given figures (opening balance, sales, cheques and cash received, returns inwards, discount allowed, bad debts, contra entries, bills receivable, credit notes) gives a closing debtors balance of N2,043,632 (balance c/d), reconciling to the closing balance b/d of N400,000 after adjustment, per the standard control account format.
(b) Total Creditors Account: balancing the given figures (opening balance, purchases, cheques paid to suppliers, returns outwards, discount received, contra, petty cash, bills payable) gives a closing creditors balance in line with the N24,000 balance shown as the closing purchases ledger balance for December 2014.

WAEC Accounting 2015 Theory — Question 10

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