PRC-1 · Chapter 3 · Question 13 of 100
A supplier, 'Global Wholesalers', had an opening credit balance of Rs. 80,000 in the payables ledger of 'Nexus Traders'. During the month, further credit purchases of Rs. 45,000 were made, and 'Nexus' paid Rs. 60,000 via cheque. What is the closing balance of the supplier's account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 65,000 Credit
Explanation
The opening liability is a credit of Rs. 80,000. Purchases increase the liability by Rs. 45,000 (Credit). Payments decrease the liability by Rs. 60,000 (Debit). The closing balance is 80,000 + 45,000 - 60,000 = Rs. 65,000 Credit.
More Ledgers and Trial Balance MCQs
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