WAEC Accounting 2013 Paper

Concept:Purchases are calculated from the creditors (accounts payable) control account.Explanation:Creditors account relationship:Opening creditors + Purchases − Cash paid to creditors − Returns outwards = Closing creditors.Rearrange to make Purchases the subject:Purchases = Closing creditors + Cash paid to creditors + Returns outwards − Opening creditors.Substitute the given values:Closing creditors = $\$2{,}285$Cash paid to creditors = $\$32{,}170$Goods returned to suppliers = $\$500$Opening creditors = $\$2{,}495$Therefore:Purchases = $\$2{,}285 + \$32{,}170 + \$500 - \$2{,}495$Purchases = $\$32{,}460$Answer:$\$32{,}460$ (Option C)