The following information relates to a firm’s most recent accounting period.
- Creditors at 1 January £5,000
- Transactions for the period 1 January to 31 December
- Discount received £500
- Credit purchases £60,000
- Payments to suppliers £54,000
- Cash purchases £7,000
- Returns outwards £3,500
The balance on the firm’s creditors control account at 31 December was?
Select ONE answer:
- £1,000
- £7,000
- £8,000
- £13,000
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:
Cash purchases are not relevant to the creditors control account
Creditors
Dr Discount Received £500
Dr Returns Outwards £3,500
Dr Bank £54,000
Dr Debtors £0
Dr Balance c/d £7,000
Dr Total £65,000
Cr Balance b/d £5,000
Cr Purchases £60,000
Cr Bank £0
Cr Total £65,000
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