CAF-1 · Chapter 12 · Question 8 of 15
An entity has opening trade payables of Rs. 500,000 and closing trade payables of Rs. 800,000. It paid Rs. 4,000,000 to suppliers during the year in cash. What is the value of credit purchases?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 4,300,000
Explanation
Using the payables control account: Cash Paid (4,000,000) + Closing Payables (800,000) - Opening Payables (500,000) = Credit Purchases of Rs. 4,300,000.
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