| Purchase ledger opening balance | N4,000 |
| sales ledger opening balance | N6,000 |
| credit purchase | N25,000 |
| Discounts allowed | N1,000 |
| Returns inwards | N2,000 |
| Credit sales during the year | N10,000 |
| Return outwards | N6,000 |
A. N29,000
B. N24,000
C. N4,000
D. N23,000
Correct Answer:
Option D – N23,000
Explanation
A bought (purchase) ledger is a system in accounting by which a business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit. from the table above it is given as thus;
opening balance + credit purchase – returns outwards. ie, 4,000 + 25000 = 29,000 – 6,000 = 23,000
