Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What i...

Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What is the creditors amount in the balance sheet?

Answer Details

To find the creditors amount in the balance sheet, we need to use the following formula: Creditors at the end = Creditors at the start + Purchases - Cash paid to creditors - Discount received Substituting the given values into the formula, we get: Creditors at the end = N940 + N4,060 - N3,890 - N490 Creditors at the end = N620 Therefore, the creditors amount in the balance sheet is N620. In summary, the creditors amount in the balance sheet is calculated by adding the starting creditors to the purchases made during the year and subtracting the cash paid to creditors and any discount received. This calculation gives us the amount of money owed to creditors at the end of the year.