Skip to content

CA Foundation · Accounting · Accounts from Incomplete Records

Kapoor Enterprises had opening creditors of Rs 1,20,000. During the year, total purchases were Rs 6,00,000 including cash purchases of Rs 1,00,000. Payments to creditors were Rs 4,30,000 and closing creditors were Rs 1,40,000. Assuming no other items, what was the discount received from creditors?

The discount received is Rs 50,000, being the balancing figure in the Total Creditors Account: credits of 6,20,000 less payments of 4,30,000 and closing creditors of 1,40,000.

  1. ARs 50,000
  2. BRs 30,000Correct
  3. CRs 20,000
  4. DRs 10,000

Explanation

Credit purchases = 6,00,000 - 1,00,000 = 5,00,000. Credit side total = 1,20,000 + 5,00,000 = 6,20,000. Debit side: payments 4,30,000 + closing 1,40,000 = 5,70,000. Discount received = 6,20,000 - 5,70,000 = 50,000. So the correct figure is Rs 50,000, not Rs 30,000.

Did you get it right without looking?

One question tells you little. A timed set on Accounts from Incomplete Records shows your real accuracy, how long you take and where you lose marks.

Practise Accounts from Incomplete RecordsFree diagnostic mock

More Accounts from Incomplete Records questions