At 1 April X9, the payables ledger control account showed a balance of $80,000.
At the end of April the following totals are extracted from the subsidiary books for April:
$ | |
Puchases day book | 247,200 |
Returns outwards day book | 8,000 |
Returns inwards day book | 5,000 |
Payment to payables, after deducting 1,000 cash discount | $241,020 |
It is also discovered that:
1. The purchase day book figure is net of sales tax at 17.5%, the other figures all include sales tax.
2. A customer's balance of $9,000 has been offset against his balance of $60,000 in the payables ledger.
3. A supplier's account in the payables ledger, with a debit balance of $ 800, has been included on the list of payables as a credit balance.
What is the corrected balance on the payables ledger control account?
Suggested solutions:
$ | $ | ||
Cash paid to suppliers | 241,020 | Opening balance (amounts owed to suppliers) | 80,000 |
Discount | 1,000 | Credit purchase | 247,200 |
Returns | 8,000 | Sales tax 17.5% | 43,260 |
Contra | 9,000 | ||
Closing balance | 111,440 | ||
370,460 | 370,460 | ||
Opening balance next year | 111,440 |
Notes: Returns inwards is for receivables control account, and payables ledger does not form part of the double entries.
To do the same topic again in ACCA F3 Payables Control Account 4
To do another topic in ACCA F3
2015 ACCA F3 Payables Control Account 4