Accounting Online Program Certification Practice Test

What was the initial trial balance figure for trade and other payables for Crane plc?

1. £149,630

2. £160,000

3. £140,000

4. £155,000

The correct answer is: £149,630

The initial trial balance figure for trade and other payables for Crane plc is £149,630. This value reflects the total amount owed by the company to its suppliers and creditors at a specific point in time. In accounting, the trial balance summarizes all balances from the general ledger and is used to check the arithmetical accuracy of the accounts. Trade and other payables are recorded as liabilities on the balance sheet, and understanding their initial figure is crucial for analyzing a company's short-term financial obligations. The determination of the correct amount likely stems from a comprehensive review of transactions related to accounts payable, including any purchases on credit that have been recorded in the period before the trial balance was prepared. The choices provided represent different plausible amounts that could be reported based on various factors, such as payment terms or sales activity. However, £149,630 is the established figure based on the company's accounting records, indicating it was accurately derived from the detailed transactional data. Clarifying why other options are not the answer can involve looking at potential transactions or adjustments that could lead to discrepancies in reporting, but such analysis isn't necessary to affirm that £149,630 meets the criteria for the initial trial balance figure in this context.