WAEC Accounting 2019 Objective — Question 6

Question 6 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.

(using the given information: Trade creditors 01/01/17 N630,000, 31/12/17 N780,000; Stock 01/01/17 N540,000, 31/12/17 N480,000; Cash paid to trade creditors in 2017 was N2,700,000.) Purchases for 2017 was

A. N3,480,000
B. N2,850,000Correct
C. N2,700,000
D. N2,550,000

Explanation

Using the creditor control account: Bal b/d N630,000 + Credit purchases = Cash paid N2,700,000 + Bal c/d N780,000. Credit purchases = N2,700,000+N780,000-N630,000 = N2,850,000.

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