At 1 April X9, the payables ledger control account showed a balance of $20,000.
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 | 5,000 |
| Returns inwards day book | 1,000 |
| Payment to payables, after deducting 1,000 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 $12,000 has been offset against his balance of $80,000 in the payables ledger.
3. A supplier's account in the payables ledger, with a debit balance of $ 800, 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) | 20,000 |
| Discount | 1,000 | Credit purchase | 164,800 |
| Returns | 5,000 | Sales tax 17.5% | 28,840 |
| Contra | 12,000 | ||
| Closing balance | 34,960 | ||
| 213,640 | 213,640 | ||
| Opening balance next year | 34,960 |
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