To determine the credit purchases for the period, we need to analyze the information provided about the purchase ledger control account. Let's break down the problem step-by-step.
Given Information:
- Opening Balance (Credit): N45,600
- Closing Balance (Credit): N72,600
- Payments to Credit Suppliers: N437,000
- Discount Received: N18,600
Step 1: Understand the Purchase Ledger Control Account
The purchase ledger control account summarizes all transactions related to credit purchases and payments made to suppliers. The balance in this account reflects the total amount owed to suppliers at any given time.
Step 2: Set Up the Equation
The formula to calculate the closing balance of the purchase ledger control account is:
[
\text{Closing Balance} = \text{Opening Balance} + \text{Credit Purchases} - \text{Payments} + \text{Discounts}
]
Where:
-
Credit Purchases are the total purchases made on credit during the period.
-
Payments are the total cash payments made to suppliers.
-
Discounts are any discounts received from suppliers.
Step 3: Rearranging the Formula
We can rearrange the formula to solve for Credit Purchases:
[
\text{Credit Purchases} = \text{Closing Balance} - \text{Opening Balance} + \text{Payments} - \text{Discounts}
]
Step 4: Plug in the Values
Now, we can substitute the values we have into the rearranged formula:
- Closing Balance: N72,600
- Opening Balance: N45,600
- Payments: N437,000
- Discounts: N18,600
Substituting these values gives us:
[
\text{Credit Purchases} = N72,600 - N45,600 + N437,000 - N18,600
]
Step 5: Perform the Calculations
Now, let's calculate each part step-by-step:
-
Calculate the change in balance:
[
N72,600 - N45,600 = N27,000
]
-
Add the payments:
[
N27,000 + N437,000 = N464,000
]
-
Subtract the discounts:
[
N464,000 - N18,600 = N445,400
]
Step 6: Final Calculation
Thus, the total credit purchases for the period is:
[
\text{Credit Purchases} = N445,400
]
Step 7: Review the Options
Now, let's compare our calculated credit purchases with the provided options:
- A. N509,600
- B. N482,600
- C. N428,600
- D. N418,400
None of the options match our calculated value of N445,400. However, if we consider the possibility of a miscalculation or misinterpretation of the question, we can analyze the options further.
Step 8: Analyzing the Options
- Option A (N509,600): This is too high and does not fit our calculations.
- Option B (N482,600): This is also higher than our calculated value.
- Option C (N428,600): This is lower than our calculated value.
- Option D (N418,400): This is significantly lower than our calculated value.
Conclusion
It appears that there may have been an error in the options provided or in the interpretation of the question. Based on our calculations, the correct credit purchases for the period should be N445,400, which does not match any of the options.
Revision Summary
- The purchase ledger control account reflects credit purchases, payments, and discounts.
- The formula for calculating credit purchases is:
[
\text{Credit Purchases} = \text{Closing Balance} - \text{Opening Balance} + \text{Payments} - \text{Discounts}
]
- Always ensure to perform calculations step-by-step to avoid errors.
- If options do not match calculated results, double-check the question and calculations for accuracy.