Question

The company Andorinha Ltda. presented on 03/15/01 the total amount of R$1,500.00 in the account of Duplicates Payable; soon, on 03/25 / X1, the company Andorinha Ltda. paid a cash duplicate in the amount of R$500.00.
Check the CORRECT alternative that presents the balance of the Duplicates Payable account after the payment of 03/25/1:

a) Credit Balance R$1,000.00.
b) Debit Balance of R$1,500.00.
c) Credit Balance of R$1,500.00.
d) Debit Balance R$500.00.

Answer 1

Answer:

a) Credit Balance R$1,000.00

Explanation:

The Duplicates Payable represents a Liability in Andorinha Ltd records.

When Andorinha Ltda paid a cash duplicate in the amount of R$500.000 the entries recorded will be :

Trade Payable-Duplicates R$500.000 (debit)

Cash R$500.000 (credit)

Effect on Balance of Duplicates Payable

Decrease in Duplicates Payable by $500,000

Remaining Balance is $100,000 (credit)