CIMA BA3 · Chapter 5 · Question 4 of 10
A payables ledger control account had an opening credit balance of $19,700. During the year credit purchases were $143,200, payments to suppliers $137,900, purchase returns $3,100, and a contra of $1,600 was made with the receivables ledger control account. What is the closing balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $20,300 credit
Explanation
Credits: opening $19,700 + credit purchases $143,200 = $162,900. Debits: payments $137,900 + returns $3,100 + contra $1,600 = $142,600. Closing credit balance = $162,900 - $142,600 = $20,300.
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