Please help, I did not get the answer for this questions below !
The question is :
Opening balance for Trade payable is $142,600
Payment made during the year - $542,300
Discount received - $13,200
Goods return $27,500
And the closing balance for Trade Payable is $137,800

How much is the purchase made during the year ?

This is a matter of doing the math of what you already know and working to a number you don't know. There's more than one way to go about this, but most people I've worked with find this the easiest: when given a beginning balance, start there.

Since this is payables, you want to take that beginning balance, then take each number and determine if that would add to or subtract from that balance. And do the math of each of those. You don't need to get fancy or do anything tricky. Just literally - if you're making a payment, what does that do to the balance of payables? Just do that and get a sub-total. Move on to the next number. Does it add to or subtract from payables? Subtotal again. Get as far as you can get with the numbers given.

Where you'll end up is a sub-total and the given ending balance. So then you look at your sub-total and ask yourself what you'd have to do to get to the ending balance. For instance, if you're at 10 and your ending balance is 12, then you'd have to add 2 to get to that ending balance. And so 2 would be your answer.

Give that a try.

Quote:

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Originally Posted by morgaine300

This is a matter of doing the math of what you already know and working to a number you don't know. There's more than one way to go about this, but most people I've worked with find this the easiest: when given a beginning balance, start there.

Since this is payables, you want to take that beginning balance, then take each number and determine if that would add to or subtract from that balance. And do the math of each of those. You don't need to get fancy or do anything tricky. Just literally - if you're making a payment, what does that do to the balance of payables? Just do that and get a sub-total. Move on to the next number. Does it add to or subtract from payables? Subtotal again. Get as far as you can get with the numbers given.

Where you'll end up is a sub-total and the given ending balance. So then you look at your sub-total and ask yourself what you'd have to do to get to the ending balance. For instance, if you're at 10 and your ending balance is 12, then you'd have to add 2 to get to that ending balance. And so 2 would be your answer.

Give that a try.

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Thanks for your advice :) I got the answer.

Dr. Cr
Bank 542,300 bal b/d 142,600
Discount received 13,200 Purchases 550,700
Bal c/d 137,800

693,300 693,300

The purchases figure was 550,700

578200

Dr side of your purchase ledger control account enter the following:
Payments 542 300,discount received 13200,purchase returns 27500,balance c/d 137 800.Add all these and obtain total of 720 800.
Cr side of your purchase ledger control account enter,Balance b/d 142 600.Thereafter balance your account to obtain purchases.You balance your account by subtracting 142 600 from 720 800 and the difference are the purchases 578 200.

The purchase made in during year is 578200.
Because openning balance at credit side and debit side is (payment made + discount received + goods return and also + closing balance ) then debit side should less than credit side so which amount is add at credit side of account.that amount is 578200.

Debit
Payments made during the year - $542,300
Goods Returns - $ 27,500
Discount Received - $ 13,200
Closing Balance - $137,800
Total - $720,800

Credit
Opening Balance - $142,600
Purchases - $578,200
Total - $720,800

We know that in the Payables Control Account, Purchases goes on the credit side because it's a debit to us and a credit to our Creditors. Any payments made to our Creditors reduces this balance and so would go on the debit side of the payables account. Discount Received and Goods returns similarly reduces the balance we owe, so they also go on the debit side. Now add the balances on the debit side, subtract the Opening Balance on the credit side and the difference is your answer.

I was practicing control account questions and couldn't pass this up so don't mind me...