25. Prepare Total Creditors Account from the following information and find out the missing figure.
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Creditors as an 01/04/2020 15,000
Total purchases 75,000
Cash purchases 3,000
Discount received 2,000
Cash paid to Creditors 50,000
Returns to suppliers 4,000
Creditors as on 31-03-2020 ?
Answers
Answer:
In the question it is mentioned that creditors as on 01.04.2020 are Rs.15000.00 whereas it is asked to calculate the creditors as on 31.03.2020 , it is presumed that candidate inadventely mentioned the date 31.03.2020 instead of 31.03.2021. Creditors as on 31.03.20 are closing balance of creditors as creditors as on 01.04.2020 are opening creditors means both value will remain same. Explanation is given taking in consideration that the desired value of creditors as on 31.03.21 sought.
Explanation:
Creditors Account will be as under:=
Creditors A/c
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01.04.20 to opening balance 15,000.00
To cash 50,000 By purchases 70,000.00
To closing creditors 35000.00
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Total 85000.00 85000.00
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Foot notes:-
Total Purchases 75000.00
Cash purchases 3000.00
Purchase on credit 72000.00
Discount received 2000.00
Net to pay to creditors 70000.00
Return to supplier means we have returned good to our supplier from whom we have purchased. As such this item is not connected anyway with the creditors account.