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

 

221 

(a) 

Trade payables as at 31 January 20X6 

 

The amount owing on trade accounts is the sum of the amount owing at the beginning of the 

period, plus the cost of purchases during the period, less the payments already made for 

purchases. If you think carefully about this, you might see that this calculation is logical. What is 

still owed is the total amount of costs incurred less payments already made. 

 

$ 

Accounts payable as at 1 August 20X5  

 4,000 

Add purchases during the period 

 10,000 

 

 14,000 

Less payments to suppliers' accounts during the period 

 

 

(8,000) 

 

  

 

6,000 

(b)