ACCA Applied Knowledge · Financial Accounting · Payables account reconciliations
When reconciling the payables ledger control account with the list of supplier balances, which of the following errors would require an adjustment to the control account?
An overcast purchase day book requires adjusting the control account, because the control account is posted from the day book totals. Errors in individual supplier accounts, such as posting to the wrong supplier or omitting an entry, require adjusting the list of balances instead.
- AA purchase invoice was posted to the wrong supplier's account in the payables ledger
- BA purchase invoice was entered in the purchase day book but omitted from the supplier's individual account
- CThe purchase day book was added up with a total that was overstated by 500Correct
- DA credit note received was posted to the correct supplier account but in the wrong month
Explanation
An overcast purchase day book overstates the credit posting to the control account, so the control account must be corrected. The wrong-supplier error and the omitted individual posting affect only the list of balances or ledger accounts, not the control account total. A wrong-month posting does not change the balances at the date of reconciliation.
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