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Sir, in one of the questions it said that reconcile the control balances with the ledgers
When the supplier account has been omitted, it just adjust it in the payables ledger, but it does affect the Payables control account as we OWE that money. Why does it not make an adjustment for it in the total control account?
Also, why is that when an a ount with balance 500 Dr has been included as 500 Cr, we correct it twice with adjustments of 1000. I am unable to understand why are the personal accounts being adjusted with payables/receivables ledger only when the also affect the total recivables. I have listened to your lectures also. Pls help sir ( with the reconciling of the control accounts with ledgers
First question:
It doesn’t affect the control account because the entry in the control will be the total of the invoices listed in the purchase day book (payables journal). The question does not say it has been omitted from there and so that total will be correct.
Second question:
You have not said, but I imagine that the 500 was a balance in the payables ledger. Usually they will be credit balance but there could be a debit balance (because, for example, we maybe paid an invoice twice by mistake). If there is a debit balance is should reduce the total, but if it has been listed as a credit balance it will wrongly have increased the total. So to put the total correct we need to reduce by 1,000.
One of the questions says-
A suppliers account in the payables ledger with a debit balance of 800 has bene included on the list of payables as a credit balance.
However while solving it, they do not include it in the payables ledger control account? Does it no affect the total payables in the control account?
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