CIMA BA3 · Chapter 5 · Question 7 of 10
Which of the following errors would cause a difference between the balance on the payables ledger control account and the total of the list of supplier balances?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) An invoice for $3,240 was correctly entered in the purchase day book but posted to the supplier's account as $2,340
Explanation
The control account takes the correct day book total, but the supplier's individual account is understated by $900, so the two totals disagree. An omitted invoice or one recorded at the wrong amount in the day book affects both records equally. Posting to the wrong supplier leaves the total of the list unchanged.
More Receivables and payables control accounts MCQs
- Q9A business decides to write off a customer's balance as irrecoverable. What is the double entry?
- Q10The receivables ledger control account agrees with the total of the list of customer balances. Which of the following is true?
- Q1What is the main purpose of a receivables ledger control account?
- Q2Which of the following items would NOT appear in the receivables ledger control account?
- Q3The following information relates to a business's receivables for the year: opening balance $28,400; credit sales $196,500; cash sales…