Question

advertising paid for 3 years 8030 September 2020 calculate the the amount of prepaid
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Answer 1

Explanation:

For getting the figure of cash paid to creditors it would be appropriate to prepare the sundry creditor's account.

Dr                       Sundry Creditor's Account                      Cr.

DateParticularsJFAmt.(Rs)DateParticularsJFAmt. (Rs)To Discount Received A/c26,0002005 Mar 31By Balance b/d

By Purchase1,80,425To Return Outward37,200Credit Purchase only7,57,000To Bills

Payable A/c

1,99,000To (Bills endorsed to Creditors) b/R26,0002006 Apr 1To Balance c/d 

2,09,050To Cash A/c

Cash paid (b/f)

4,40,175

9,37,4259,37,425

Working Note

Credit Purchase = Total Purchase  -  Cash Purchase

Credit Purchase = (8,97,000−1,40,000)=Rs.7,57,000

      Amount Paid to Creditors  = Rs4,40,175