JAMB Accounting Past Questions & Answers - Page 4

The discount on the left hand side is known as discount allowed and it is given by a firm to its customers when they pay their accounts quickly or promptly.

The amount ₦19,075 represents credit sales. In the Sales Ledger Control Account, the 'Sales' line item typically represents credit sales made during the period. Cash sales would usually be recorded directly in the bank or cash account, not in the sales ledger control account. The sales ledger control account is used to record transactions with credit customers, including sales, payments, returns and discounts.

Cheques received source is from bank/cash book. Therefore, the bank represent the receipts from all the debtors of the business. Since the account contains transactions related to all the trade receivable (of all the debtors) in the business.

Memorandum branch account or double column method is prepared to determine the gross profit. They are purely memoradum entries and do not form part of the double entries.

Depreciation of office machine equipment is an administration expenses. Administration expenses comprises of cost of accounting and secretarial work.