ACCA F3 Payables Control Account 4

At 1 April X9, the payables ledger control account showed a balance of $60,000.

At the end of April the following totals are extracted from the subsidiary books for April:

	$
Puchases day book	82,400
Returns outwards day book	7,000
Returns inwards day book	6,000
Payment to payables, after deducting 6,000 cash discount	$80,340

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 $6,000 has been offset against his balance of $40,000 in the payables ledger.

3. A supplier's account in the payables ledger, with a debit balance of $ 7,200, 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	80,340	Opening balance (amounts owed to suppliers)	60,000
Discount	6,000	Credit purchase	82,400
Returns	7,000	Sales tax 17.5%	14,420
Contra	6,000
Closing balance	57,480
	156,820		156,820
		Opening balance next year	57,480

Notes: Returns inwards is for receivables control account, and payables ledger does not form part of the double entries.