Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 11)
In the books of finances there was goods costing $2,000. Purchased on credit from A. Matthews. Which financial statement did it effect?
Decrease in trade payables by $2,000
Reduce draft profit by $2,000
No impact on financial position
Increase trade payables by $2,000
Explanation
Purchased on credit effects payables account, so the amount must increase the trade payables by $2,000.
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