Question : From the following information calculate the Amount to be paid to creditors
(Rs)
Sundry creditors as on March 31, 2005 $1, 80, 425$
Discount received $26, 000$
Discount allowed $24, 000$
Return outwards $37, 200$
Return Inward $32, 200$
Bills accepted $1, 99, 900$
Bills endorsed to creditors $26, 000$
Creditors as on April 1, 2006 $2, 09, 050$
Total Purchase $8, 97, 000$
Cash Purchase $1, 40, 000$

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Solution

Answer : For getting the figure of cash paid to creditors it would be appropriate to prepare the sundry creditor's account.
Dr Sundry Creditor's Account Cr.
Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)
To Discount Received A/c $26, 000$ 2005 Mar 31 By Balance b/d
By Purchase $1, 80, 425$
To Return Outward $37, 200$ Credit Purchase only $7, 57, 000$
To Bills
Payable A/c
$1, 99, 000$
To (Bills endorsed to Creditors) b/R $26, 000$
2006 Apr 1 To Balance c/d
$2, 09, 050$
To Cash A/c
Cash paid (b/f)
$4, 40, 175$

$9, 37, 425$ $9, 37, 425$

Working Note
Credit Purchase = Total Purchase - Cash Purchase
Credit Purchase = $(8, 97, 000 - 1, 40, 000) = R s .7, 57, 000$
Amount Paid to Creditors = $R s 4, 40, 175$

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Similar questions

Q. From the following information calculate the amount to be paid to creditors:

	Rs
Sundry creditors as on March 31, 2017	1,80,425
Discount received	26,000
Discount allowed	24,000
Return outwards	37,200
Return inward	32,200
Bills accepted	1,99,000
Bills endorsed to creditors	26,000
Creditors as on April 01, 2016	2,09,050
Total purchases	8,97,000
Cash purchases	1,40,000

Find out the credit purchases from the following:

	Rs
Balance of creditors April 01, 2016	45,000
Balance of creditors March 31, 2017	36,000
Cash paid to creditors	1,80,000
Cheque issued to creditors	60,000
Cash purchases	75,000
Discount received from creditors	5,400
Discount allowed	5,000
Bills payable given to creditors	12,750
Return outwards	7,500
Bills payable dishonoured	3,000
Bills receivable endorsed to creditors	4,500
Bills receivable endorsed to creditors dishonoured	1,800
Return inwards	3,700

Asertain the appropriate missing figures by preparing Total Creditors Account from the following information :
Creditors as on March 31, 2018 Rs. 6,000,
Creditors as on March 31, 2017 Rs. 36,000,
Cash paid to creditors Rs. 1,04,400,
Discount allowed by creditors Rs 2,000,
Purchase return Rs. 2,000,
Bills payables accepted Rs. 34,000,
Cheques issued to creditors Rs. 20,000,
Bills receivables endorsed in favour of creditors Rs. 40,000 out of which $25 %$ bills were dishonoured.

Q. Question : The following information is given:

	(Rs)
Opening Creditors	$60, 000$
Cash paid to Creditors	$30, 000$
Closing Creditors	$36, 000$
Returns Inward	$13, 000$
Bill matured	$27, 000$
Bill dishonoured	$8, 000$
Purchase return	$12, 000$
Discount allowed	$5, 000$

Calculate credit purchases during the year.

Q. Question : From the following information calculate total purchase

	(Rs)
Creditors Jan 1, 2005	$30, 000$
Creditors Dec 31, 2005	$20, 000$
Opening balance of Bills Payable	$25, 000$
Closing balance of Bills Payable	$35, 000$
Cash paid to Creditors	$1, 51, 000$
Bills discharged	$44, 500$
Cash purchase	$1, 29, 000$
Return outwards	$6, 000$

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	(Rs)
Sundry creditors as on March 31, 2005	$1, 80, 425$
Discount received	$26, 000$
Discount allowed	$24, 000$
Return outwards	$37, 200$
Return Inward	$32, 200$
Bills accepted	$1, 99, 900$
Bills endorsed to creditors	$26, 000$
Creditors as on April 1, 2006	$2, 09, 050$
Total Purchase	$8, 97, 000$
Cash Purchase	$1, 40, 000$

Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt. (Rs)
	To Discount Received A/c		$26, 000$	2005 Mar 31	By Balance b/d By Purchase		$1, 80, 425$
	To Return Outward		$37, 200$		Credit Purchase only		$7, 57, 000$
	To Bills Payable A/c		$1, 99, 000$
	To (Bills endorsed to Creditors) b/R		$26, 000$
2006 Apr 1	To Balance c/d		$2, 09, 050$
	To Cash A/c Cash paid (b/f)		$4, 40, 175$
			$9, 37, 425$				$9, 37, 425$