Question

From the following information calculate the amount to be paid to creditors:

	Rs
Sundry creditors as on March 31, 2017	1,80,425
Discount received	26,000
Discount allowed	24,000
Return outwards	37,200
Return inward	32,200
Bills accepted	1,99,000
Bills endorsed to creditors	26,000
Creditors as on April 01, 2016	2,09,050
Total purchases	8,97,000
Cash purchases	1,40,000

Answer 1

Creditors Account
Dr.				Cr.
Particulars	Amount Rs		Particulars	Amount Rs
Discount Received	26,000		By Balance b/d	1,80,425
Return Outwards	37,200		Purchases – credit
Bills accepted	1,99,000		(8,97,000 – 1,40,000)	7,57,000
B/R (endorsed to creditors)	26,000
Balance c/d	2,09,050
Cash/Bank (Balancing figure)	4,40,175
	9,37,425			9,37,425

Amount paid to Creditors is Rs 4,40,175.