Accounting Questions and Answers

The purchases ledger control account showed a credit balance of N525 000 on April 30, 2006.
This amount shows?

Debtors.................................N20
Provision for bad debts..................10%
Provision for discount on debtors........5%

The provision for bad debt is?

Debtors.................................N20
Provision for bad debts..................10%
Provision for discount on debtors........5%

Determine the amount provided for discount allowed on debtors?

(i) Facilitating the preparation of final accounts
(ii) Making the existence of error easy to detect 
(iii)Checking the accuracy of positions periodically.

From the above, which of the following are among the uses of control accounts?

........................1/7/2005............30/6/2006

Drawings.....................................N3,000
Capital.................25 000...............N42,500
Furniture...............6,500...............N10,200

Additional capital during the year amounts to 300% of the drawings.

What is the amount of the additional capital?