Question

Creditors on 01-01-2013 - Rs.80,000 and on 31-12-2013 - Rs.65,000 cash paid to creditors S. 1.10.000. Find out the credit purchases during the year 2013 was Rs a) Rs. 1.95,000 (b) Rs.95.000 Rs. 1,50,000 (d) Rs. 1,60.000
Tell me ​

Answer 1

Explanation:

creditors on01-01-2013

Answer 2

The credit purchases during the year 2013 was Rs 95,000

Option (B) is the correct answer.

Given:

Creditors on 01-01-2013 - Rs.80,000

Creditors on 31-12-2013 - Rs.65,000

To find:

credit purchases during the year 2013

Solution:

Calculation of credit purchase during the year 2013:

opening creditors                   = 80000

add: credit purchase              = XXX      (Balancing figure)

less: cash paid to creditors    = (1,10,000)

closing creditors                     = 65000

so, credit purchase:

we have,

⇒80000 + XXX - 110000 = 65000

⇒XXX = 65000+110000-80000

= Rs 95,000

So, Option (B) is the correct answer.

The credit purchases during the year 2013 was Rs 95,000

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