Accounting JAMB

What is the purchase ledger balance?

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

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