PRC-1 · Chapter 3 · Question 39 of 100
'Zenith Tech' has an opening trade payables balance of Rs. 40,000. During the month: Credit purchases Rs. 120,000; Payments to suppliers via bank Rs. 90,000; Settlement discounts received Rs. 5,000; Contra settlement with receivables Rs. 10,000. What is the closing trade payables balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 55,000 Credit
Explanation
Closing Payables = Opening liability (40,000) + Credit purchases (120,000) - Bank payments (90,000) - Discounts received (5,000) - Contra settlement (10,000) = Rs. 55,000 Credit.
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