ACCA F3 Difference in statement
Ordan received a statement from one of its suppliers, Alta, showing a balance due of $40,000. The amount due according to the payables ledger account of Alta in Ordan’s records was only $500.
Comparison of the statement and the ledger account revealed the following differences:
1 A cheque sent by Ordan for $4,000 has not been allowed for in Alta’s statement.
2 Alta has not allowed for goods returned by Ordan $900.
3 Ordan made a contra entry, reducing the amount due to Alta by $18,000, for a balance due from Alta in Ordan’s receivables ledger. No such entry has been made in Alta’s records.
What difference remains between the two companies’ records after adjusting for these items?
Suggest Solution:
| Balance Due | 40,000 |
| Less Cheque | 4,000 |
| Less Returns | 900 |
| Less Contra | 18,000 |
| Adjusted Balance | 17,100 |
| Ledger Balance | 500 |
| Difference Remains | 16,600 |
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