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August 18, 2015 at 11:24 am
Question 6 in your lectures includes returns payable why not in question 4
John Moffat says
August 18, 2015 at 5:54 pm
I assume that you are referring to the test questions at the end of the chapter.
There is no such thing as ‘returns payable’. They are purchase returns, i.e returns to suppliers.
In question 4, we need to correct the total of the balances in the payables ledger. The fact that the total of the returns journal was wrong does not affect that payables ledge (each item is entered there individually). It only affects the control account (which is where the total is posted).
In question 6 it is the control account that we are correcting, and the total has been posted on the wrong side.
If you have not watched the lecture on Books of Prime Entry then you really should – then you will know what is entered where. The lectures form a complete course for Paper F3, but are meant to be watched in order.
August 20, 2015 at 2:38 am
Thanks for the correction, purchases returns. Your explanation makes it clearer. Thank you
May 16, 2014 at 3:41 pm
Thanks for good and clear explanation.
December 9, 2013 at 10:49 am
Lectures can not be downloaded. It is the only way that we can keep this website free of charge
February 11, 2014 at 2:03 pm
when reconciling control accounts with normal payable s/receivables ledger in exam they give us different errors. which of the errors will effect control accounts ONLY ?
how to identify them i always get stuck with this part .
February 11, 2014 at 2:19 pm
The main ones to look for are those where the totals of any of the books of primed entry are wrong (purchase day book, sales day book etc.).
The totals of these books are only used in the control accounts.
October 30, 2013 at 6:08 am
why does settlement refunds to custmer be loacted on the debit side of receivables control account?
October 30, 2013 at 7:23 am
A refund is a repayment of cash to the customer.
Maybe they have paid us too much by mistake and so we repay them – CR cash DR receivables
(and they are not called settlement refunds).
October 30, 2013 at 8:11 am
but if place the refund on the debit side of receivables, then more receivebles would be created, actually it is the money owed by the company to custmer?
October 30, 2013 at 8:37 am
Suppose you sell goods for 1000. You DR receivables 1000.
Suppose the customer pays 1500 by mistake (500 too much). Then you DR Cash and CR Receivables with 1500.
There is now a credit balance on receivables – you owe them 500.
If we refund (or repay) that 500, the CR Cash DR Receivables and the balance is now zero.
October 30, 2013 at 8:49 am
Thanks a lot~~~
October 30, 2013 at 10:56 am
You are welcome
September 10, 2013 at 10:27 pm
great great great tutoring!!!my textbook looked like greek until i found a decoder…….OT!!!
September 22, 2014 at 10:45 am
I share the same sentiment
April 8, 2013 at 6:08 pm
This is the best lecturer i have ever listened to. Very straight forward explanation. Thumbs up!
April 9, 2013 at 8:29 am
Vanna Motilal says
June 24, 2012 at 7:59 pm
do we put cash sales in control accounts? reply asap
June 24, 2012 at 8:21 pm
@Vanna Motilal, ohhhhh dont bother got my ans from the next lecture…..
December 6, 2011 at 3:44 pm
I have the same question with onyxera.
In solving Test Question 4 of Chapter 16, page 111 on the free lecture notes (ACCA-Paper-F3-notes-December-2011-OpenTuition.pdf), I do not understand why error (2) “The total of the purchase return journal was undercast by $1,000? was not corrected in the payables ledger. Shouldn’t this be debited to the payables ledger to reduce liability?
Could you please kindly help?
August 2, 2012 at 10:05 am
@jenniferwoo, The payable ledger is where there is an account for each individual payable. The individual figures will have been entered correctly in these accounts, and the total of the returns journal is irrelevant for this.
Where we use the total from the journal is when we do the double entry – debit payables and credit returns – and so it is the payables account in the nominal ledger that needs correcting.
November 21, 2011 at 3:45 am
October 26, 2011 at 6:01 pm
In solving Test Question 4 of Chapter 16, page 111 on the free lecture notes (ACCA-Paper-F3-notes-December-2011-OpenTuition.pdf), I do not understand why error (2) “The total of the purchase return journal was undercast by $1,000” was not corrected in the payables ledger. Shouldn’t this be debited to the payables ledger to reduce liability?
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