Trade payables/ creditors belong to which class of accounts?

Capital

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Assets

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Liabilites

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Expenses

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Solution

The correct option is C Liabilites
Trade payables/ creditors are the group of people to whom the business owes funds in lieu of goods bought on credit & hence they are a liability for the business.

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Similar questions

Q. Accounts payable/creditors can be classified as __________.

Accounts payable or creditors ledgers will generally have a _____ balance.

Q. State giving reasons, which of the following transactions would improve, reduce or not change the Current Ratio, if Current Ratio of a company is (i) 1:1; or (ii) 0.8:1:
(a) Cash paid to Trade Payables.
(b) Purchase of Stock-in-Trade on credit.
(c) Purchase of Stock-in-Trade for cash.
(d) Payment of Dividend payable.
(e) Bills Payable discharged.
(f) Bills Receivable endorsed to a Creditor.
(g) Bills Receivable endorsed to a Creditor dishonoured.

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.

After transferring liabilities like creditors and bills payables in the realisation account, in the absence of any information regarding the payment, such liabilities are treated as ___

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Trade payables/ creditors belong to which class of accounts?

The correct option is C LiabilitesTrade payables/ creditors are the group of people to whom the business owes funds in lieu of goods bought on credit & hence they are a liability for the business.

The correct option is C Liabilites
Trade payables/ creditors are the group of people to whom the business owes funds in lieu of goods bought on credit & hence they are a liability for the business.