ICAEW AF · Chapter 6 · Question 4 of 9
The total of the list of balances in a business's payables ledger is £18,640, which does not agree with the payables control account. The following errors are found: 1. A supplier's credit balance of £420 was omitted from the list. 2. An invoice for £1,150 was correctly entered in the purchases day book but posted to the supplier's account as £1,510. 3. The purchases day book total was overcast by £900. What is the corrected total of the list of payables ledger balances?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) £18,700
Explanation
Only errors affecting individual supplier accounts change the list. Add the omitted balance of £420. The invoice was posted £360 too high (£1,510 - £1,150), so deduct £360. Corrected list = £18,640 + £420 - £360 = £18,700. The day book overcast affects the control account only, not the individual accounts.
More Control accounts MCQs
- Q6Which of the following is a main purpose of maintaining a receivables control account?
- Q7The sales day book for June was undercast by £500. The individual customer accounts were posted correctly. What correction is required?
- Q8A business's receivables control account shows a balance of £41,370, while the list of individual customer balances totals £40,170…
- Q9A business keeps its individual customer accounts as memorandum records outside the double entry system. Where is the double entry for…
- Q1The following information relates to a business's receivables for the year: Opening balance £28,400 Credit sales £196,500 Cash sales…