The payables control account below contains a number of errors:
PAYABLES CONTROL ACCOUNT
DR Opening balance £318,600
DR Cash paid to suppliers £1,405,500
DR Refunds received from suppliers £2,700
DR Total £1,726,800
CR Purchases £1,268,600
CR Discounts received £8,200
CR Contras with receivables £48,000
CR Closing balance £402,000
CR Total £1,726,800
What will the closing balance be when the errors have been corrected?
Select ONE answer:
- £122,800
- £128,200
- £144,600
- £224,200
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 2
- Notcorrect
- Correct – DRs Cash paid to suppliers £1,405,500, Contras with receivables £48,000, Discounts received £8,200 Closing Balance £128,200 Total 1,589,900 CRs Opening balance £318,600, Purchases £1,268,600, Cash refunds £2,700 Total 1,589,900
- Not correct
- Not correct
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