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In relation to trade payables at the year end of 30 April 20X1, Jitka plc hasdiscovered that:
1) a contra of £85 with trade receivables is required; and
2) an early settlement discount of £2,220, which was taken appropriately by a credit customer, was credited to revenue and debited to trade payables. Jitka plc had not expected the customer to take the discount.
Problem 1: Before these discoveries, the balance on trade payables was £72,560. In its statement of financial position as at 30 April 20X1 Jitka plc will have a figure for trade payables of:
A) £70,255
B) £74,695
C) £74,865
D) £76,915
Financial Statement Analysis and Preparation
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