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) | 300,000 | Purchases | 7,416,000 |
| Cash paid to suppliers | 7,200,000 | Contras against receivables | 20,000 |
| Purchases returns | 40,000 | Discounts received | 4,000 |
| Refunds received from suppliers | 1,000 | Closing balance | 101,000 |
| 7,541,000 | 7,541,000 |
Suggested solutions:
| $ | $ | ||
| Cash paid to suppliers | 7,200,000 | Opening balance (amounts owed to suppliers) | 300,000 |
| Purchases returns | 40,000 | Refunds received from suppliers | 1,000 |
| Contras against receivables | 20,000 | Purchases | 7,416,000 |
| Discounts received | 4,000 | ||
| 7,264,000 | 7,717,000 | ||
| closing balance | 453,000 |
Answer: $453,000 (CREDIT BALANCE)
To do the same topic again in ACCA F3 Payables Control Account
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2015 ACCA F3 Payables Control Account