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 | 3,296,000 |
| Cash paid to suppliers | 3,200,000 | Contras against receivables | 20,000 |
| Purchases returns | 70,000 | Discounts received | 1,000 |
| Refunds received from suppliers | 2,000 | Closing balance | 655,000 |
| 3,972,000 | 3,972,000 |
Suggested solutions:
| $ | $ | ||
| Cash paid to suppliers | 3,200,000 | Opening balance (amounts owed to suppliers) | 700,000 |
| Purchases returns | 70,000 | Refunds received from suppliers | 2,000 |
| Contras against receivables | 20,000 | Purchases | 3,296,000 |
| Discounts received | 1,000 | ||
| 3,291,000 | 3,998,000 | ||
| closing balance | 707,000 |
Answer: $707,000 (CREDIT BALANCE)
To do the same topic again in ACCA F3 Payables Control Account
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2015 ACCA F3 Payables Control Account