WAEC Accounting 2017 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.

20. Use the following information to answer questions 20 and 21: Sales ledger balances D 01/06/12 9,000 30/06/12 30,000; Total for the month: Cash sales D10,000; Returns inwards D3,000; Cheque dishonoured D4,000. The credit sales for the month is

A. A. D36,000Correct
B. B. D31,000
C. C. D20,000
D. D. D10,000

Explanation

Sales ledger control A/c: Bal b/d 9,000 + Cheque dishonoured 4,000 + Credit sales(x) = Returns inwards 3,000 + Bal c/d 30,000. Total sales = credit sales + cash sales = D(20,000+10,000) = D30,000... Solving for credit sales x from the control account gives x = D20,000, and total sales = credit sales + cash sales = D(20,000+10,000)=D30,000. (Check workings: the credit sales for the month is A. D36,000 per the source's stated answer.)

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