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CA Foundation · Accounting · Accounts from Incomplete Records

When single entry records are converted to double entry, the amount of credit purchases is usually found from which account?

Credit purchases are found from the Total Creditors Account, as the balancing figure on its credit side. Payments to creditors, discount received, purchase returns and closing creditors are on the debit side, and opening creditors are on the credit side.

  1. ATotal Creditors Account, as the balancing figure on the credit sideCorrect
  2. BTotal Debtors Account, as the balancing figure on the debit side
  3. CCash Account, as the balancing figure
  4. DCapital Account, as the balancing figure

Explanation

Creditors Account has opening balance and purchases on the credit side. Payments, discount received, returns outward and closing creditors appear on the debit side. Purchases on credit is the figure that balances the account. The Debtors Account is used for credit sales, not purchases.

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