A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1.After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal,the balance of the creditor's account on April 30 is:
A) $9,200 debit
B) $6,960 credit
C) $14,160 credit
D) $12,800 debit

Question

Quizplus · Accepted Answer

The initial balance of the creditor's account in the accounts payable ledger is $10,560.

After a transaction of $12,800 is posted from the purchases journal, the balance of the account becomes $23,360 ($10,560 + $12,800).

After a transaction of $9,200 is posted from the cash payments journal, the balance of the account becomes $14,160 ($23,360 - $9,200).

Therefore, the balance of the creditor's account on April 30 is $14,160 credit (meaning the creditor owes the business $14,160).

A Creditor's Account in the Accounts Payable Ledger Has a Balance