Question

From the following information, calculate the amount paid to Creditors:

₹

Sundry Creditors as on 01/04/2019 1,80,000

Discount earned 6,000

Returns outwards 7,000

Bills accepted 1,50,000

Credit purchases 2,00,000

Sundry Creditors as on 31/03/2020 1,90,000​

Answer 1

Answer:

for example

Question : From the following information calculate the Amount to be paid to creditors

(Rs)

Sundry creditors as on March 31, 2005 1,80,425

Discount received 26,000

Discount allowed 24,000

Return outwards 37,200

Return Inward 32,200

Bills accepted 1,99,900

Bills endorsed to creditors 26,000

Creditors as on April 1, 2006 2,09,050

Total Purchase 8,97,000

Cash Purchase 1,40,000

Answer

Answer : 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.

Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)

To Discount Received A/c 26,000 2005 Mar 31 By Balance b/d

By Purchase 1,80,425

To Return Outward 37,200 Credit Purchase only 7,57,000

To Bills

Payable A/c

1,99,000

To (Bills endorsed to Creditors) b/R 26,000

2006 Apr 1 To Balance c/d

2,09,050

To Cash A/c

Cash paid (b/f)

4,40,175

9,37,425 9,37,425

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