The balance of £37,564 in a firm’s purchases ledger control recount did not agree with the total of the creditors’ balances listed as at the same date.
Upon investigation, the following errors were discovered:
- A refund of £140 received from a credit supplier because of an overpayment had been posted to the wrong side of the control account.
- Returns outwards of £310 had also been posted to the wrong side of the control account.
- The list of balances had been undercast by £200.
- Discounts received of £276 were not recorded in the control account.
The correct credit balance on the purchases ledger control recount is?
Select ONE answer:
- £30,030
- £39,060
- £39,150
- £39,210
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct – The undercasting of the list of balances does not affect the control account. £37,564 + (£140 x 2) – (£310 x 2) – £276 = £36,948
- Not correct
- Not correct
- Not correct
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