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: $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

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