Purchasers ledger control account can also be referred to as
Sales day book
Purchasers day book
Creditors ledger
Debtors ledger
Correct answer is C
The Creditors Ledger accumulates information from the purchases journal. The purpose of the Creditors Ledger is to provide knowledge about which suppliers the business owes money, and how much. It is also known as accounts payable or purchase journal.
In sales ledger control account, returns inwards is usually
Debited and debtors credited
Credited and sales returns debited
Debited and cash credited
Credited and bank credited
Correct answer is B
Remember sales ledger control accounts keeps count of all sales made on credit. If a customer returns goods that were sold on credit, we debit sales returns account and credit returns inwards
The LIFO method has an advantage over FIFO in that stocks are valued at
Previous prices
Current prices
Average rates
Flat rates
Correct answer is B
LIFO is used by firms to lower their tax liabilities at the expense of an outdated inventory value as reflected on the balance sheet.
#1,198.00
#1,218.38
#1,257.67
#1,408.00
Correct answer is C
| date | quantity | unit cost | Dispatch quantity | Balance |
| 1 | 100 | 10.00 | 100 | |
| 3 | 60 | 11.50 | 60 | |
| 15 | 85 | 75 | ||
| 15 | 180 | 12.80 | 255 | |
| 22 | 145 | 110 | ||
| 340 | 34.3 | 230 | 110 |
(34.3 / 3) x 110 = 1257.67
The value of stock is gotten by dividing the total unit cost by the number of times stock was purchased and multiplying it by the balance of stock at the end of the month or period.
#862.50
#840.00
#806.25
#750.00
Correct answer is D
No explanation has been provided for this answer.