WAEC - Accounts Principles Of Accounts (2023 - No. 20)
Use the following information to answer the question
|
$ |
|
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The balance c/d on trade creditors will be recorded in the balance sheet as
current asset
short-term liability
long-term liability
fixed asset
Explanation
The balance c/d on trade creditors will be recorded in the balance sheet as a "short-term liability."
Trade creditors represent amounts owed by a business to its suppliers for goods or services that have been purchased on credit. These amounts are typically expected to be paid within a short period, usually within a year. As a result, trade creditors are classified as short-term liabilities on the balance sheet.
In the given information, the trade creditors balance on December 31, 2021, is $6,000. This represents the amount that the business still owes to its suppliers at the end of the year. Since it is an amount payable in the short term, it will be recorded as a short-term liability on the balance sheet.
Trade creditors represent amounts owed by a business to its suppliers for goods or services that have been purchased on credit. These amounts are typically expected to be paid within a short period, usually within a year. As a result, trade creditors are classified as short-term liabilities on the balance sheet.
In the given information, the trade creditors balance on December 31, 2021, is $6,000. This represents the amount that the business still owes to its suppliers at the end of the year. Since it is an amount payable in the short term, it will be recorded as a short-term liability on the balance sheet.
Comments (0)
