I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

QUESTION 

Calculating purchases I

 

Again, the calculation above could be made in a T-account, with purchases being the balancing figure to 

complete the account. Prepare the T-account. 

ANSWER 

TRADE PAYABLES 

 

 

$       

$  

Cash payments 

 

31,479

 

Opening balance b/d 

 

3,728 

Closing balance c/d 

 

  2,645

 

Purchases (balancing figure) 

 

30,396 

 

 

34,124  

 

34,124 

 

QUESTION 

Calculating purchases II

 

Mr Harmon does not keep full accounting records, but the following information is available in respect of 

his accounting year ended 31 December 20X9. 

 

$       

Cash purchases in year 

3,900 

Cash paid for goods supplied on credit 

27,850 

Trade payables at 1 January 20X9 

970 

Trade payables at 31 December 20X9 

720 

In his trading account for 20X9, what will be Harmon's figure for purchases? 

ANSWER 

Credit purchases = $(27,850 + 720 – 970) = $27,600.  

Therefore total purchases = $(27,600 + 3,900) = $31,500.  

 

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