Answer : For getting the figure of cash paid to creditors it would be appropriate to prepare the sundry creditor's account. Dr                       Sundry Creditor's Account                      Cr. DateParticularsJFAmt.(Rs)DateParticularsJFAmt. (Rs) To Discount Received A/c$$26,000$$2005 Mar 31By Balance b/d By Purchase $$1,80,425$$ To Return Outward$$37,200$$Credit Purchase only$$7,57,000$$ To Bills Payable A/c $$1,99,000$$ To (Bills endorsed to Creditors) b/R$$26,000$$ 2006 Apr 1To Balance c/d  $$2,09,050$$ To Cash A/c Cash paid (b/f) $$4,40,175$$ $$9,37,425$$$$9,37,425$$ Working Note Credit Purchase = Total Purchase  -  Cash Purchase Credit Purchase = $$(8,97,000 - 1,40,000) = Rs.7,57,000$$       Amount Paid to Creditors  = $$Rs4,40,175$$