Which of the following items will appear in the Total Creditors Account?
Answer Details
The item that will appear in the Total Creditors Account is credit purchases. Total creditors are the total amount that a business owes to its suppliers for goods or services received on credit. Credit purchases are the purchases made by a business on credit from its suppliers. When a business makes a credit purchase, it increases its accounts payable, which is a liability account. The total of all credit purchases made by a business during a given period will be reflected in the Total Creditors Account.
Discount allowed and discount received are not included in the Total Creditors Account since they are both related to discounts and are deducted from the total payable amount. Cash purchases are not included in the Total Creditors Account since they are purchases made with cash, not credit.