At 1 April X9, the payables ledger control account showed a balance of $30,000.
At the end of April the following totals are extracted from the subsidiary books for April:
| $ | |
| Puchases day book | 164,800 |
| Returns outwards day book | 1,000 |
| Returns inwards day book | 6,000 |
| Payment to payables, after deducting 7,000 cash discount | $160,680 |
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 $1,500 has been offset against his balance of $10,000 in the payables ledger.
3. A supplier's account in the payables ledger, with a debit balance of $ 6,400, 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 | 160,680 | Opening balance (amounts owed to suppliers) | 30,000 |
| Discount | 7,000 | Credit purchase | 164,800 |
| Returns | 1,000 | Sales tax 17.5% | 28,840 |
| Contra | 1,500 | ||
| Closing balance | 53,460 | ||
| 223,640 | 223,640 | ||
| Opening balance next year | 53,460 |
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