PRC-1 · Chapter 3 · Question 31 of 100
The 'Trade Payables' account in the General Ledger of 'Apex Logistics' shows total entries on the debit side amounting to Rs. 45,000 and total entries on the credit side amounting to Rs. 110,000. What is the brought down (b/d) balance for the start of the next accounting period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 65,000 Credit
Explanation
The balance is the difference between the two sides. Since the credit side (Rs. 110,000) is heavier than the debit side (Rs. 45,000), the difference of Rs. 65,000 is carried down on the debit side and brought down as a credit balance for the next period.
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