PRC-1 · Chapter 3 · Question 54 of 100
The Trade Payables account has an opening credit balance of Rs. 66,450. During the period, purchases were Rs. 205,600, payments made were Rs. 195,000, discount received was Rs. 28,900, and a contra settlement with receivables was Rs. 12,700. What is the closing balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 35,450 Credit
Explanation
Closing balance = Opening (66,450) + Purchases (205,600) - Payments (195,000) - Discount received (28,900) - Contra (12,700) = Rs. 35,450 Credit.
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