Comments

  1. avatar says

    Hello John,
    Could you please explain me why in the Question 4 (Chapter 16) we don’t have to consider the Error 2, where the purchase returns journal was undercast by $1,000, to get the correct answer?

    Many Thanks!

  2. avatar says

    While perusing through my text I came across Cash pd to clear credit balances ( debited to r’bles control a/c) and Cash received clearing debit balances (credited to pybls control a/c), needed clarification please.

    • Profile photo of John Moffat says

      It is not easy to answer without seeing the example.

      I am guessing that maybe some of our receivables had overpaid us and therefore we had come credit balances. If they have paid us too much then we will give them their money back – cr cash; debit receivables. This then clears the credit balances.

      The came idea for the debit balances on payables.

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