A supplier’s account shows credit purchases of Rs 40,000. Payments of Rs 28,000 were made, goods worth Rs 3,000 were returned and a discount of Rs 1,000 was received. What is the closing balance?
Correct answer C. Rs 8,000 credit
Explanation
Credits total Rs 40,000 and debits total 28,000 + 3,000 + 1,000 = 32,000, leaving a credit balance of Rs 8,000 still owed to the supplier.
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