The payables ledger control account below contains a number of errors:
All items relate to credit purchases.
What should the closing balance be when all the errors are corrected?
$ | $ | ||
Opening balance (amounts owed to suppliers) | 500,000 | Purchases | 4,944,000 |
Cash paid to suppliers | 4,800,000 | Contras against receivables | 10,000 |
Purchases returns | 90,000 | Discounts received | 7,000 |
Refunds received from suppliers | 3,000 | Closing balance | 432,000 |
5,393,000 | 5,393,000 |
Suggested solutions:
$ | $ | ||
Cash paid to suppliers | 4,800,000 | Opening balance (amounts owed to suppliers) | 500,000 |
Purchases returns | 90,000 | Refunds received from suppliers | 3,000 |
Contras against receivables | 10,000 | Purchases | 4,944,000 |
Discounts received | 7,000 | ||
4,907,000 | 5,447,000 | ||
closing balance | 540,000 |
Answer: $540,000 (CREDIT BALANCE)
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2015 ACCA F3 Payables Control Account