- This topic has 4 replies, 2 voices, and was last updated 6 years ago by
thefutureaccountant.
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thefutureaccountant
- Topics: 8
- Replies: 25
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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 12,920There 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!
Ken Garrett
- Topics: 10
- Replies: 10052
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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 3,750Bal 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?
thefutureaccountant
- Topics: 8
- Replies: 25
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I made a mistake for the bank amount. Correct amount is
79, 500.
The rest of the question is posted correctly.Ken Garrett
- Topics: 10
- Replies: 10052
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Then it seems to me that your answer is right and the book answer is wrong.
thefutureaccountant
- Topics: 8
- Replies: 25
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@Ken Garrett: Alright. Thanks for your answer!
Ken Garrett- You must be logged in to reply to this topic.