Question

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

Answer 1

Answer:

Step-by-step 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.

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