Question

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Payable is $1,500 The starting balance of Cash is $9,700 The starting balance of Debt is $2,900 The starting balance of Inventory is $3,800 1. Buy $15 worth of manufacturing supplies on credit 2. Borrow $60 from a bank 3. Pay $7 owed to a supplier What is the final amount in Accounts Payable?

Answer 1

Account Payable
Particulars		Amt.($)	Particulars		Amt.($)
To cash		7	By bablance b/d		1,500
			By inventory		15
To balance c/d		1,508
		1,515			1,515
Debt
Particulars		Amt.($)	Particulars		Amt.($)
			By bablance b/d		2,900
			By Cash		60
To balance c/d		2,960
		2,960			2,960
Cash
Particulars		Amt.($)	Particulars		Amt.($)
To balance b/d		9,700	By Accounts payable		7
To Debt		60
			By balance c/d		9,753
		9,760			9,760
Inventory
Particulars		Amt.($)	Particulars		Amt.($)
To balance b/d		3,800
To Accounts payable		15
			By balance c/d		3,815
		3,815			3,815