JAMB Accounts Principles of Accounts 2012 Paper

Concept:An income and expenditure account balances by comparing total income with total expenditure. The difference is the surplus or balancing figure.Explanation:First, add all the income items:$210,000 + 80,000 + 60,000 = 350,000$Next, add all the expenditure items:$20,000 + 15,000 + 40,000 + 10,000 + 50,000 = 135,000$Since total income is greater than total expenditure, subtract the expenditure from the income:$350,000 - 135,000 = 215,000$This $215,000$ is the balance required to balance the account. In the ledger, the credit side is higher, so the balancing figure is entered on the debit side.Answer:215,000 debit (Option C).