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Good afternoon, Mr John…
I dont understand this sentence..
A supplier’s account in the payables ledger, with a debit balance of 800, has been included on the list of payables as a credit balance.
If there’s a debit of 800 in personal account, how come an account make another mistake in the payables ledger?
Thank you..
I don’t know what you mean by ‘another mistake’.
Balances in the payables ledger will normally be credit balances. However there might be a debit balance (because maybe we had overpaid, or maybe we had returned goods that we had already paid for). So that is not a mistake.
What is a mistake is that listing it as if it was a credit balance increases the total of the list, whereas since it was a debit balance it should have reduced the total of the list.
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