CAF-1 · Chapter 12 · Question 14 of 15
Which of the following items would normally be DEBITED to a reconstructed Trade Payables (Creditors) control account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Cash paid to suppliers.
Explanation
In a Trade Payables control account, payments made to suppliers reduce the liability, so they are recorded on the debit side. Purchases and opening balances increase the liability and are recorded on the credit side.
More Incomplete Records MCQs
- Q1Which of the following is the most common reason a business might have 'incomplete records'?
- Q2In the absence of a complete double-entry system, an entity can determine its opening or closing capital by preparing which of the…
- Q3Incomplete records are most commonly associated with which type of entities?
- Q4If a retailer sells goods at a 'mark-up' of 25% on cost, what is the equivalent gross profit 'margin' on sales?
- Q5When dealing with incomplete records, how can the Cost of Sales be mathematically derived if the sales figure and the gross profit margin…