JAMB Accounting Past Questions & Answers - Page 5

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.

From the given information, the expenditures that are likely to be classified as recurrent expenditures are:

Purchase of stationeries: Le15,000

Salaries and wages: Le60,000

Purchase of drugs: Le50,000

To calculate the recurrent expenditure for the year, we add these amounts together:

Le15,000 + Le60,000 + Le50,000 = Le125,000

Therefore, the recurrent expenditure for the year is Le125,000.