Question on: JAMB Accounting - 2022

The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?

A

N509,600

B

N536,600

C

N536,600

D

N418,400

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Correct Option: B

To find the credit purchases for the period, you need to calculate the change in the purchase ledger control account balance during the period.

1. Start with the opening balance: N45,600 (credit).
2. Add the payments made to credit suppliers during the period: N437,000 (credit).
3. Subtract the discount received on this account: N18,600 (credit).
4. Add the closing balance: N72,600 (credit).

Now, calculate:

N45,600 (opening balance) + N437,000 (payments made) - N18,600 (discount received) + N72,600 (closing balance) = N536,600

So, the total credit purchases for the period were N536,600.

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