Question

From the following information, calculate the amount to be paid to creditors

$\begin{array}{cc}& \text{(Rs.)}\\ \text{Sundry creditors as on March 31, 2005}& 1,80,425\\ \text{Discount received}& 26,000\\ \text{Discount allowed}& 24,000\\ \text{Return outwards}& 37,200\\ \text{Return inward}& 32,200\\ \text{Bills accepted}& 1,99,000\\ \text{Bills endorsed to creditors}& 26,000\\ \text{Creditors as on April 1, 2006}& 2,09,050\\ \text{Total purchase}& 8,97,000\\ \text{Cash purchase}& 1,40,000\end{array}$

Answer 1

For getting the figure of cash paid creditors it would be appropriate prepare the sundry creditor's account.

$\text{Dr.}\text{Sundry Creditor's Account}Cr.\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ & & & & 2005& & & \\ & \text{Discount Received}& & 26,000& \text{Mar 31}& \text{Balance b/d}& & 1,80,425\\ & \text{Return Outward}& & 37,200& & \text{Purchases}& & 7,57,000\\ & \text{Bills Payable}& & 1,99,000& & \text{(Credit Purchase only)}& & \\ & \text{B/R (endorsed to creditors)}& & 26,000& & & & \\ 2006& & & & & & & \\ Apr1& \text{Balance c/d}& & 2,09,050& & & & \\ & \text{Cash}& & 4,40,175& & & & \\ & \text{(Cash paid (b/f))}& & & & & & \\ & & & \underset{–}{\underset{–}{\overline{9,37,425}}}& & & & \underset{–}{\underset{–}{\overline{9,37,425}}}\end{array}$

Amount paid to Creditors = Rs. 4,40,175

Note:
Credit Purchase = Total Purchase - Cash Purchase

Credit Purchase = (8,97,000 - 1,40,000) = Rs. 7,57,000