ACCA FA · Guided practice (Show me how)
Chapter 16: Supplier Statement Reconciliation
Supplier statement reconciliation - three kinds of difference
On 6 June we received a statement from one of our suppliers dated 31 May, that shows us as owing them a total of $4,600.
Our payables account for this supplier shows a balance owing of $3,150 as at 31 May.
On investigation we discover the following:
(a) The statement includes an invoice for $900 for goods that were sent to a different customer. The supplier has made a mistake.
(b) We sent the supplier a cheque for $1,200 on 29 May. They did not receive it until 3 June, so it does not appear on the statement.
(c) An invoice for $650 had been entered in our payables account twice.
(a) Working down the supplier's statement
Prepare a statement reconciling the balance on the supplier's statement at 31 May to the agreed balance owed to the supplier.
(b) Correcting our own records
Calculate the corrected balance on our payables ledger account for this supplier at 31 May, and show that it agrees with the balance reached from the supplier's statement.
Opening this exercise…