Skip to content

ACCA Applied Knowledge · Financial Accounting · Payables account reconciliations

Which of the following items would require an adjustment to the payables ledger control account, rather than only to an individual supplier's account?

Settlement discount received that was not recorded anywhere requires an adjustment to the control account. The discount reduces the total owed to suppliers, so the control account must be debited. The other errors affect only individual accounts or the list of balances and leave the control account total correct.

  1. AAn invoice posted to the wrong supplier's account
  2. BA supplier invoice posted to the correct account with the wrong amount
  3. CSettlement discount received that was not recorded anywhere in the ledgersCorrect
  4. DA supplier balance wrongly extracted when listing balances

Explanation

Unrecorded settlement discount received affects both the control account and the supplier account, so the control account needs a debit adjustment. A misposting to the wrong supplier or a listing error leaves the total unchanged. A wrong amount in the individual account needs a change only there if the control account has the right total.

Did you get it right without looking?

One question tells you little. A timed set on Payables account reconciliations shows your real accuracy, how long you take and where you lose marks.

Practise Payables account reconciliationsFree diagnostic mock

More Payables account reconciliations questions