Day: March 7, 2020

Given the following information, what is the balance on the creditors control account as at 31 December?

• Credit balance on the creditors control account at 1 January – £4,600
• Transactions for the period 1 January to 31 December £1,000
• Discount received Credit purchases £54,000
• Credit purchases returns £6,000
• Refunds received from suppliers £2,000
• Payments to suppliers £39,000
• Balance in creditors ledger set off against debtors ledger £1,000

Select ONE answer:

1. £8,600
2. £9,600
3. £12,000
4. £13,600

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 4

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

Answer 4:

Creditors
Dr Discount Received £1,000
Dr Returns Outwards £6,000
Dr Bank £39,000
Dr Debtors £1,000
Dr Balance c/d £13,600
Dr Total £60,600
Cr Balance b/d £4,600
Cr Purchases £54,000
Cr Bank £2,000
Cr Total £60,600

 

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