Day: March 6, 2020

A firm’s creditors at the beginning of an accounting period totalled £2,500 and at the end of the same accounting period, they totalled £4,200.

If the firm paid £32,000 to its creditors during the period, its credit purchases for the period totalled?

Select ONE answer:

1. £30,300
2. £31,600
3. £33,700
4. None of the above

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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

Answer 3:

Creditors
Dr Bank £32,000
Dr Balance c/d £4,200
Dr Total £36,200
Cr Balance b/d £2,500
Cr Purchases £33,700
Cr Total £36,200

 

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