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Could someone please explain, why in the following question, the answer is B, but not D?
Question:
A company’s trade payables account at 30 September 20X1 is as follows:TRADE PAYABLES ACCOUNT
Cash at bank 21,600 Balance b/d 14,000
Balance c/d 11,900 Purchases 19,500What was the balance for trade payables in the trial balance at 1 October 20X0?
A $14,000 DR
B $14,000 CR
C $11,900 DR
D $11,900 CRThe question asks for the balance that was included in Trial Balance at 1 October 20X0. The balance on this date is “Balance b/d $14,000”.
The balance of $11,900 is the balance on 30 September 20X1.
Thanks, but isn’t ‘Balance c/d’ means that it becomes an opening balance in the next accounting period, thus a balance in the Trial Balance as at 1 October 20X0?
You’re confusing yourself with the way the dates are presented. Lets just remove ‘X’ with 1 in the dates. This one will make it way easier for you.
A company’s trade payables account at 30 September 2011 is as follows:
TRADE PAYABLES ACCOUNT
Cash at bank 21,600 Balance b/d 14,000
Balance c/d 11,900 Purchases 19,500What was the balance for trade payables in the trial balance at 1 October 2010?
A $14,000 DR
B $14,000 CR
C $11,900 DR
D $11,900 CRI’m sure no more explanation needed.
A company’s trade payables account at 30 September 20X1 is as follows:
TRADE PAYABLES ACCOUNT
$ $
Cash at bank 21,600 Balance b/d 14,000
Balance c/d 11,900 Purchases 19,500
33,500 33,500
What was the balance for trade payables in the trial balance at 1 October 20X0?
What was the balance for trade payables in the trial balance at 1 October 2010?A $14,000 DR
B $14,000 CR
C $11,900 DR
D $11,900 CRWhy this answer is B
It’s asking closing balance of previous year.So $14000Dr right?
Then it shows opening balance one credit sideI was banging my head because of this question too. the YEAR is where we should’ve paid attention
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