Day: October 29, 2023

In the last year Alex Trading purchased inventory using cash for £11,680 and also purchased good for resale on credit for £32,485.

Trade payables were paid every 30 days.

What was the closing accounts payable balance?

Select ONE answer:

1. £960
2. £1,710
3. £2,670
4. £3,630

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 – 365 days / 30 days = 12.1667 == > £32,485 / 12.1667 = £2,670
4. Not correct

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