Use the following information to answer the question given

\(\begin{array}{c|c} & \text{1/6/2011} & \text{30/5/2012}\\ & D & D \\ \hline \text{Creditor} & 2,495 & 2,285\\ \text{Debtors} & 1,215 & 2,145 \\ \text{Cash paid to creditors} & - & 32,170\\ \text{Cash received from customers} & - & 40,650\\ \text{Goods returned to suppliers} & - & 500\end{array}\)

Purchases for the year is

  • A D32,880
  • B D32,780
  • C D32,460
  • D D31,960

The correct answer is C. D32,460

Purchase = closing creditor - opening creditor + cash from paid to creditors + returns outwards

2,285 - 2,495 + (32,170 + 500)

-210 + 32,670 = 32,460

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