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) | 700,000 | Purchases | 4,120,000 |
| Cash paid to suppliers | 4,000,000 | Contras against receivables | 60,000 |
| Purchases returns | 60,000 | Discounts received | 2,000 |
| Refunds received from suppliers | 8,000 | Closing balance | 586,000 |
| 4,768,000 | 4,768,000 |
Suggested solutions:
| $ | $ | ||
| Cash paid to suppliers | 4,000,000 | Opening balance (amounts owed to suppliers) | 700,000 |
| Purchases returns | 60,000 | Refunds received from suppliers | 8,000 |
| Contras against receivables | 60,000 | Purchases | 4,120,000 |
| Discounts received | 2,000 | ||
| 4,122,000 | 4,828,000 | ||
| closing balance | 706,000 |
Answer: $706,000 (CREDIT BALANCE)
To do the same topic again in ACCA F3 Payables Control Account
To do another topic in ACCA F3
2015 ACCA F3 Payables Control Account