I have a question regarding the following exercise:
“Billing Co’s Trade Payables account at 30 September 20X1 is as follows:”
Trade Payables Account
Dr – Cash at bank – 21,600 & Balance c/d – 11,900 Cr side – Balance b/d – 14,000 , Purchases – 19,500
Required: What was the Trade Payables balance to be shown in the trial balance on 1 October 20X0? a) 14000 DEBIT B) 14000 CREDIT C) 11900 DEBIT D) 11900CREDIT
I am curious about the logic here. For me, the closing balance of 11,900 Dr becomes the opening balance for the next period, and therefore it should appear on the Cr side. Am I correct?
The opening balance on 1 October is indeed a credit balance of 11,900, and it is this that should appear on the trial balance on 1 October.
So the correct answer is D.
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