WAEC Accounting 2021 Objective — Question 36

Question 36 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

[Creditors (01/01/19) N223,000; Creditors (31/12/19) N316,000; Credit purchases N1,426,000; Discount received N64,000; Company's cheque dishonoured N90,000.] Payment to creditors is

A. N1,423,000
B. N1,359,000Correct
C. N1,333,000
D. N1,295,000

Explanation

Using the Total Creditors Account: Bal b/d 223,000 + Credit purchases 1,426,000 + Dishonoured cheque 90,000 = 1,739,000, less Discount received 64,000 and closing balance 316,000, leaves Payment (Bank) = N1,359,000.

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