Accounting JAMB

Credit sales is given at 160% of cash received. What is the balance c/d? debit 64300

A. N333 000
B. N234 000
C. N343 000
D. N243 000

Correct Answer:

Option D – N243 000

Explanation

credit sales = 160% x 280,000 (cash receivable)

160/100 x 280,000

1.6 x 280,000 = 448,000

credit sales = 448,000

Bal c/d = debit side – credit side of the account. Hence we have;

Debit side = 87,000 + 488,000 + 58,000 + 50,000 = 643,000

credit side = 40,000 + 50,000 + 280,000 + 30,000 = 400,000

643,000 – 400,000 = 243,000

Bal c/d = 243,000

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