Assertions

Please can you give posts suitable titles that help others (and me) - for example, this could have been "M/J19 Q9". The difference is (72,268) i.e. DR balance in the purchase ledger vs 84,235 CR balance on the statement - so 84,235 - (-72,268) = 84,235 + 72,268 = 156,403 See here re debit note: https://opentuition.com/topic/sales-and-purchases/

Sorry Kim re title. I'm a little lost here though. Why did you subtract 72168 from 84235. Dr balance of 72168 means may be I have paid more as usually payables are credit balances. So if supplier is saying I owe him 84235 I already paid 72168 twice Soo...? I'm lost here..

The difference between 72168 DR and 84235 CR is 156,403. I showed it "minus minus" (i.e. two negatives make a plus). The balances themselves have nothing to do with explaining the difference - it could have said 32168 DR and 124235 CR - the difference is still 156,403 so FORGET about "72,168 being paid twice" - this isn't what's happened and it wouldn't explain the difference (if 72,168 was paid twice the difference would be 72,168!) Consider option 1 starting with the balance per supplier's (i.e. Poole's) statement 84,235: if Chester paid 156,403 which wasn't owing, the balance would become 84,235 due to Poole, less 156,403 paid to Poole = 72168 now owed back to Chester Consider option 2 - a debit note has the "opposite" effect of an invoice - if anything is posted to "wrong side" of an account, the error is TWICE the amount mis-posted so the difference arising from a misposting of 156,403 would be 312,806 (so cannot account for difference) Consider option 3 - this is just a "red herring" - if the invoice is processed (regardless of the timing of the receipt of goods) there would be no difference.

Hi sir I'm still not able to get the second one. I understood what debit note is But re the misposting I can't seem to follow it ?

Suppose a company receives a purchase invoice $1,000 and posts it to the CR side of an expense account - it should have been debited, so the error on this account (i.e. the difference between what the balance should be and the recorded balance) is $2,000 (i.e. 2 x).

Agreed. But our option is that the invoice of $156403 is posted as a debit note. They should raise a debit note right

An invoice should be posted as an invoice not as a debit note which would be on the opposite side of the account.

THats the thing.. thank you thank you.......

Phew! You're welcome!