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Forums › FIA Forums › FA1 Recording Financial Transactions Forums › Payables control account question from BPP textbook
Hello,
Can someone, please, explain to me why the answer on page 306 is 16,920 and not 12,970?
Here is the question prompt:
A payables control account contains the following entries.
$
Bank 79,520
Credit purchases 83,200
Discount received 3,750
Balance c/f at 31 December 20X8 12,920
There are no other entries in the account. What was the opening balance brought forward at 1 January 20X8?
Kindly provide me a step by step explanation on how to find the answer.
Many thanks!
It is difficult to set out a T account here, but this is my best effort:
Payables control
Dr Cr
B/d balance X
Bank 79,520
Credit purchases 83,200
Discount recd 3,750
Bal c/d 12,920
Totals 96,190 96,190
Balance b/d should therefore be 12,990 to make both sides balance.
So, I get neither of the answers you quote. Have you copied the question correctly?
I made a mistake for the bank amount. Correct amount is
79, 500.
The rest of the question is posted correctly.
Then it seems to me that your answer is right and the book answer is wrong.
@Ken Garrett: Alright. Thanks for your answer!