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Complete and balance the Creditors Control Account on 31 May 2016 from the following information: € Creditors balance on 1 May 2016 6,100 Total credit purchases for May 5,900 Total cash paid to creditors in May 5,500 Dr Creditors Control Account Cr Date Details € Date Details € OR (Alternative Format) Creditors Control Account Date Details Dr Cr Balance € € € - Junior Cycle Business Studies - Question 7 - 2018

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Question 7

Complete-and-balance-the-Creditors-Control-Account-on-31-May-2016-from-the-following-information:--€--Creditors-balance-on-1-May-2016---6,100-Total-credit-purchases-for-May---5,900-Total-cash-paid-to-creditors-in-May--5,500--Dr-Creditors-Control-Account----Cr--Date-Details-€-Date-Details-€----OR-(Alternative-Format)--Creditors-Control-Account--Date-Details-Dr-Cr-Balance--€-€-€-Junior Cycle Business Studies-Question 7-2018.png

Complete and balance the Creditors Control Account on 31 May 2016 from the following information: € Creditors balance on 1 May 2016 6,100 Total credit purchases ... show full transcript

Worked Solution & Example Answer:Complete and balance the Creditors Control Account on 31 May 2016 from the following information: € Creditors balance on 1 May 2016 6,100 Total credit purchases for May 5,900 Total cash paid to creditors in May 5,500 Dr Creditors Control Account Cr Date Details € Date Details € OR (Alternative Format) Creditors Control Account Date Details Dr Cr Balance € € € - Junior Cycle Business Studies - Question 7 - 2018

Step 1

Creditors balance on 1 May 2016

96%

114 rated

Answer

The opening balance is €6,100. This will be recorded as a credit entry in the creditors control account.

Step 2

Total credit purchases for May

99%

104 rated

Answer

The total credit purchases for May are €5,900. This will be recorded as a debit entry.

Step 3

Total cash paid to creditors in May

96%

101 rated

Answer

The total cash paid to creditors is €5,500. This will be recorded as a credit entry.

Step 4

Balancing the Creditors Control Account

98%

120 rated

Answer

To balance the account, add the total debits and credits:

Total Debits = €5,900 (Purchases) Total Credits = €6,100 (Balance b/d) + €5,500 (Payments) = €11,600

The Balance c/d therefore is:

Balance c/d = Total Credits - Total Debits Balance c/d = €11,600 - €5,900 = €6,500

Record this as the balance carried down (c/d) to the next month.

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