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SSC Financial and Cost Accounting P-1 QUESTION #9658
Question 1
When converting Single Entry to Double Entry for a medium-scale entity, Credit Purchases are ascertained through:
  • The Cash Book payment side
  • The Debtors Account
  • The Creditors Account as a balancing figure✔️
  • The Statement of Affairs
Correct Answer Explanation
Credit Purchases are the balancing figure (missing item) in the Creditors Account. The equation is: Opening Creditors + Credit Purchases = Cash Paid + Discount Received + Returns Outward + Closing Creditors. Solving for Credit Purchases gives the missing figure.