ACCA Applied Knowledge · Financial Accounting · Payables account reconciliations
Which of the following items would NOT appear in the payables ledger control account?
Purchases of non-current assets paid for in cash would not appear. The control account records only movements in amounts owed to credit suppliers, such as payments, discounts received and contras. A cash purchase creates no payable, so it never passes through the payables ledger.
- ACash paid to credit suppliers
- BSettlement discounts received from suppliers
- CContra entries set against the receivables ledger
- DPurchases of non-current assets paid for in cashCorrect
Explanation
The control account records only transactions with credit suppliers through the payables ledger. Payments, discounts received and contras all affect supplier balances. A cash purchase of a non-current asset does not create or settle a payable, so it is excluded.
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