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Payables account
Debit: Cash at bank $100,750
Credit: Balance b/d $250,225
Purchases $325,010Assuming there are no other entries to be made, other than to balance off the account, what is the closing balance on the trade payables account?
A. $474,485 Dr
B. $474,485 CrClearly, i see the balance c/d will be in debit side of payables, it will be moved into the next period and become the balance b/d. i choose A why the answer of this question is B…very confusing…
Although the ‘missing figure’ is on the opposite side, we always carry forward the balance to the opposite side. It is to replace all the debits and credit by the net result, and the net of the three debit and credits is a net credit.
You really must watch the free lectures where all of this is explained.
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