QUESTION 45
While carrying out the reconciliation of the balance on the payables control account in the
general ledger with the supplier’s statements, Darum discovered the following errors:
(i) A supplier’s statement had not accounted for cash in transit of $300.
(ii) The total of the purchase day book was overcast by $2,000.
(iii) Darum took a settlement discount of $3,777 that was not allowed by the supplier on
their statement as the payment was late.
Which of the above errors require a correcting entry in the control account?
A (i) and (ii) only
B (ii) and (iii) only
C (iii) only
D All of the above
While carrying out the reconciliation of the balance on the payables control account in the
general ledger with the supplier’s statements, Darum discovered the following errors:
(i) A supplier’s statement had not accounted for cash in transit of $300.
(ii) The total of the purchase day book was overcast by $2,000.
(iii) Darum took a settlement discount of $3,777 that was not allowed by the supplier on
their statement as the payment was late.
Which of the above errors require a correcting entry in the control account?
A (i) and (ii) only
B (ii) and (iii) only
C (iii) only
D All of the above