Question

Question 28.
Creditors on 1st April, 2017 were ₹ 15,000, Purchases on credit were ₹ 30,000, Cash paid to Creditors during 2017-18 was ₹ 20,000, Returns Outward (regarding credit purchases) were ₹ 1,000 and Bills Payable accepted during the year ₹ 10,000. Find the balance of Creditors on 31st March, 2018.

Answer 1

Answer:

im not studying accounts

Answer 2

The balance of the creditors on 31 March, 2018, amounts to Rs 14,000

Explanation:

Prepare the creditors account as:

Creditors Account

Debit Side

Cash A/c                                      Rs 20,000

Purchase Return A/c                   Rs 1,000

Bills payable A/c                         Rs 10,000

Balance c/d                                 Rs 14,000

Total                                            Rs 45,000

Credit Side

Balance b/d                                Rs 15,000

Purchases A/c                             Rs 30,000

Total                                            Rs 45,000

The creditors balance on 31 March, 2018 is the balance will be carried down (c/d), that amount to Rs 14,000

NOTE: Return outward also termed as Purchase Return.