Finding Credit Purchases

Q.

What is the correct formula for calculating credit purchases from creditors account?

1. Closing Creditors + Payments made to creditors + Opening creditors

2. Closing Creditors + Payments made to creditors - Opening creditors

3. Opening Creditors + Payments made to creditors - Closing creditors

4. Closing Creditors - Payments made to creditors + Opening creditors

Q.

Credit sales can be obtained by preparing:

1. Creditors account

2. Cash book

3. Statement of affairs

4. Debtors account

Q.

What is trade credit?

Q.

Gopal does not keep proper books of account.
Following information is given below:

$\begin{array}{ccc}\text{Items}& \text{Jan1, 2005}& \text{Dec 31, 2005}\\ \text{Cash in hand}& 18,000& 12,000\\ \text{Cash at bank}& 1,500& 2,000\\ \text{Stock in trade}& 80,000& 90,000\\ \text{Sundry Debtors}& 36,000& 60,000\\ \text{Sundry Creditors}& 60,000& 40,000\\ \text{Loan}& 10,000& 8,000\\ \text{Office equipments}& 25,000& 30,000\\ \text{Lands and Building}& 30,000& 20,000\\ \text{Furniture}& 10,000& 10,000\end{array}$

During the year he introduced Rs. 20, 000 and withdrew Rs. 12, 000 from the business.
Prepare the statement of profit or loss on the basis of given information.

Q.

Balance of opening creditors = Rs. 60, 000 , Balance of closing creditors = Rs. 80, 000 , Payments made during the year = Rs. 1, 40, 000.
What is the amount of credit purchases during the year?

1. Rs. 2, 00, 000

2. None of the above

3. Rs. 1, 20, 000

4. Rs. 1, 60, 000

Q.

Calculate the amount of bills receivable dishonoured from the following information

$\begin{array}{cc}& (Rs.)\\ \text{Opening balances of bills receivable}& 1,20,000\\ \text{Bills Collected(honoured)}& 1,85,000\\ \text{Bills receivables endorsed}& 22,800\\ \text{Closing balance of bills receivables}& 50,700\\ \text{Bills receivables received}& 1,50,000\end{array}$

Q. Credit Purchase can be obtained by preparing .

1. cash book
2. statement of affairs
3. debtors account
4. creditors account

Q. While passing the entry for goods bought on credit, A/c is debited and A/c is credited.

1. purchase
2. sales
3. creditors
4. debtors

Q. Which of the following best describes the meaning of ‘Credit Purchases’?

1. Goods bought on credit
2. Goods paid for
   
3. All of the above
4. Goods bought for resale
   

Q.

What are the accounts payable?

1. Amounts owed to suppliers

2. Amounts owed to customers

3. Cash purchases

4. None of these

Q.

If creditors balance was Rs. 1, 000 on 1st Jan 2018 and Rs. 2, 000 on 31st Dec. 2018 and a payment of Rs. 500 was made to creditors, what is the amount of credit purchases made during the year 2018?

1. Rs. 2, 500

2. Rs. 500

3. Rs. 1, 500

4. Rs. 2, 000

Q.

Company purchased a machine on credit from Mr. Ram for Rs 1, 00, 000. Now a cheque has been issued in his favor. Which of the following is correct?

1. Debit Mr. Ram`s account & credit Bank account by Rs 1, 00, 000

2. Debit bank account & credit Mr. Ram`s account by Rs 1, 00, 000

3. Debit creditors account & credit debtors account by Rs 1, 00, 000

4. Debit Machine account & credit Bank account by Rs 1, 00, 000

Q.

What is a disadvantage of trade credit in the case of a seller?

Q.

Find the amount of credit purchases from the below mentioned details

Particulars	Rs.
Opening Balance of Creditors	20, 000
Closing Balance of Creditors	25, 000
Payment to Creditors	1, 40, 000
Return Inwards	2, 000

1. Rs. 1, 45, 000

2. Rs. 1, 43, 000

3. Rs. 1, 47, 000

4. None of these

Q. How is money different from credit money ?

Q. If books are kept under single entry system, credit purchase are ascertained by preparing ____________.

1. Total debtors account
2. Total creditors account
3. Credit purchases account
4. Bills payable account

Q.

pass journal entry 4 dis

Started Business with cash rs.10000 and creditors rs.20000