What will be the amount of credit purchases, if the opening balance of creditors is Rs.7,600; cash paid to creditors Rs.20,000; discount allowed by them Rs.500; Returns Outward are Rs.2,400; Bills payable accepted Rs.4,600 and the closing balance of creditors is Rs.9,500?
Rs.29,400
The correct answer is option 2. The formula to calculate credit purchases is: Credit Purchases = Closing Balance of Creditors + Returns Outward + Bills Payable Accepted + Cash Paid to Creditors - Opening Balance of Creditors - Discount Allowed. So, Credit Purchases = Rs.9,500 + Rs.2,400 + Rs.4,600 + Rs.20,000 - Rs.7,600 - Rs.500 = Rs.29,400.
Similar Questions
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
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“Debit all Expenses and Losses, Credit all Gains and Income” is the principle to record journal entry for ______ Accounts.
When a number of transactions on the same date or relating to one particular account/nature are recorded by means of a single journal entry, such an entry is called as ______.
Which of the option shows the correct recording of the trade discount received on purchases in the books of accounts?
Returned damaged office stationary and received Rs 10,000. The account to be credited is ______.
What will the entry for cash sales of Rs 2500?
Which account is debited while recording an outstanding expense?
Read the following:
Rahul sold goods worth ₹50,000 to Avika and drew a bill of exchange payable after three months. In place of Avika, the bill is accepted by Kavya. Rahul gives away this bill to his creditor Anshul. Which option correctly describes each party's role in this bill transaction?
________ is often referred to as book of prime entry or the book of original entry.
Important Questions from Journal Entries
Furniture for a cloth dealer is a/an
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
In the case of hire purchase, assets account is debited with
Sale of furniture by a furniture dealer for cash is debited to:
Recording of business transactions are done in a chronological manner in ____.
