During October 2012, purchases, purchases returns and amounts paid to suppliers were 728,450, 11,200 and 682,500 respectively.

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During October 2012, purchases, purchases returns and amounts paid to suppliers were £728,450, £11,200 and £682,500 respectively. As at 1 October a list of Trade payables ledger balances included £149,550 credit balances and £7,400 debit balances. Identify the total of credit balances in the Trade payables ledger, at the month-end, assuming that the only additional information provided is as stated in each of the following alternative scenarios:

(a) Payments to trade payables include £280,250 paid taking advantage of 5% cash discount offered by the suppliers and by the month-end the debit balances in the Trade payables ledger amounted to £5,200

(x) £176,900

(y) £167,350

(z) £182,100


(b) During the month of October offset by contra amounted to £15,800; while at the month-end the debit balances in the Trade payables ledger amounted to £8,700

(x) £169,800

(y) £161,100

(z) £201,400

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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