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from BPP course Notes:
total of list of balances in moor payables ledger is 877800$ at 30 june 20×5. balance did not agree with moor PLCA. following errors were discvered
1) contra entry of 1960$ was recoreded in PLCA but not in payables ledger
2) total of purchase retursn daybook was undercast by 2000$
3) invoice for 8688$ was posted to supliers account for 8868$solution is 875660$
i cannot get why point two is not considered.this is the expalantion that hinestly is making things more confused.
note: the purchase daybook being undercasted does not affect the pbl ledger because the individual amounts (rather than the total) from the purchase day book are posted to the payables ledger accounts.you please explain me this last note in a more understandable way?
thanks in advance
You need to watch my free lectures on Books of Prime Entry – then it will be clear (and I cannot possibly type out the lectures here 🙂 )
The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
It is the total of the day book that is entered into the control account, and so if the total is wrong then the control account will be wrong as well.
However in the payables ledger we enter every individual amount and so the total is not relevant (whether the total is right or wrong).
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