Paper 2 · Financial statements - sole trader

Maria had trade payables of $19,840 at 1 January 2015. During the year ended 31 December 2015 she paid$ 354,240 to trade payables in cash, and her trade payables balance increased by $10,560 to$ 30,400 by 31 December 2015 (no discounts or returns affected the account). Calculate Maria's credit purchases for the year.

Model answer

364800

Also accepted: $364,800, 364,800, $364800

Explanation: Trade payables account: Opening balance

19,840 + Credit purchases − Payments

354,240 = Closing balance

30,400. So Credit purchases =

30,400 +

354,240 −

19,840 = $364,800.

Derived from ZIMSEC Accounting Paper 2, June 2018, Q1

Get the full paper, not just one question

Danho has every sitting for this paper, with your progress tracked question by question, offline.