At 1 April X9, the payables ledger control account showed a balance of $90,000.
At the end of April the following totals are extracted from the subsidiary books for April:
| $ | |
| Puchases day book | 494,400 |
| Returns outwards day book | 5,000 |
| Returns inwards day book | 8,000 |
| Payment to payables, after deducting 5,000 cash discount | $482,040 |
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 $3,000 has been offset against his balance of $20,000 in the payables ledger.
3. A supplier's account in the payables ledger, with a debit balance of $ 4,000, 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 | 482,040 | Opening balance (amounts owed to suppliers) | 90,000 |
| Discount | 5,000 | Credit purchase | 494,400 |
| Returns | 5,000 | Sales tax 17.5% | 86,520 |
| Contra | 3,000 | ||
| Closing balance | 175,880 | ||
| 670,920 | 670,920 | ||
| Opening balance next year | 175,880 |
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