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WAEC Accounting 2019 Paper

Question : 6

Total: 45

Cash paid to trade creditors in 2017 was N2,700,000. 00

Solution:

Concept:

Use the creditors account to find credit purchases, then apply the stock formula to compute cost of goods sold.

Explanation:

Let credit purchases be

P

Creditors equation: Opening creditors + Purchases − Cash paid = Closing creditors.

So,

P = 780{,}000 - 630{,}000 + 2{,}700{,}000 = 2{,}850{,}000

Cost of goods sold = Opening stock + Purchases − Closing stock.

= 540{,}000 + 2{,}850{,}000 - 480{,}000

= 2{,}910{,}000

Answer:

\mathrm{N}2{,}910{,}000

(Option B).

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