Purchase of machinery costing 1, 200 was debited to the purchase account. As a result the purchases account balance will be: Discount of 30.

2.      Discount of £30.00 received from a trade creditor was credited to the creditors’ personal account. As a result the balance on the creditor’s personal balance will be............................

3.      A business‘s debtors at March total £10 000. During the month of March the business receives £6,000 from there debtors and the total of debtors at 31 March is £12000. The credit sales for the month must therefore have been: ........................

4.      At the start of a year a business’s creditors total £14 000, and at the end of the year they total £26 000. During the year £40 000 was paid to creditors, discount received being £220, and purchases returns £1000. The credit purchases for the year would therefore amount to: ................................

5.      Purchases of goods costing £150 from A. Smith & Co have been credited to the account of R. Smith & Co. As a result the purchases account balance is: ..................................

1. Purchase of machinery costing £1, 200 was debited to the purchase account. As a result thepurchases account balance will be: increased by £1200 whereas in reality the purchase of machinery...