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Hi!
Could you help me?Sometimes I stay confused about which balance the question is asking.
When is asked what open balance should be included … it is ok
But when is asked what is the balance for trade payable I don’t if this balance is c/d or b/d and why.
My questionis based in the question from BPP 3.14
Billing Co’s trade payable account at 30 sep 20×1 is as follow.Trade Payable
Bank 21,600 | Balance b/d 14,000
Bal c/d 11,900 | Purchase 19,500
33,500 | 33,500What was the balance for trade payable in the trial balance at 1 Oct 20×0?
A) 14,000 Dr
B) 14,000 Cr
C) 11,900 Dr
D) 11,900 CrThe balance is 14,000 .. right
I just don’t understand why it refer to the b/d and doesn’t to the c/d in the previous years.Thanks in advance.
In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other.
$14,000 is the balance brought down at the start of the year.
At the end of the year, the balance is 11,900 and is carried down on the opposite side as a credit balance.
This is all explained in my free lectures (on Chapter 3 of the free lecture notes). The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Thanks very much Sir John.
I am new here so I am learning the plataform yet, but for sure next time I ask in the right place.So…
In this question I just didn’t understand why the answer is B and not A.Because the question asks what the balance is on 1 October 20X0, which is the balance at the start of the year.
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