At the beginning of an accounting period, a firm owed its creditors £15,000.
During the period, the firm’s credit purchases amounted to £87,000 and it paid £94,000 to its creditors.
Assuming there were no other transactions relating to creditors, at the end of the accounting period the firm owed its creditors the sum of?
Select ONE answer:
- £7,000
- £8,000
- £14,000
- £22,000
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct
- Not Correct
- Not Correct
Answer 2:
Creditors
Dr Bank £94,000
Dr Balance c/d £8,000
Dr Total £102,000
Cr Balance b/d £15,000
Cr Purchases £87,000
Cr Total £102,000
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