Question from Course notes, chapter 16.
The total of the list of balances in Adele’s payables ledger was $438,900 at 30 June 2008. This balance did not agree with Adele’s payables ledger control account balance. The following errors were discovered:
(1) A contra entry of $980 was recorded in the payable ledger control account, but not in the payable ledger
(2) The total of the purchase returns journal was undercast by $1000
(3) An invoice for $4344 was posted to the supplier’s account as $4434
What amount should Adele report in its statement of financial position as accounts payable at 30 June 2008?
A $436,830
B $438,010
C $439,790
D $437,830
Why the answer is D, not A?
D is 438900-980-90=437830. But why (2 - $1000) didn’t be deducted?
The total of the list of balances in Adele’s payables ledger was $438,900 at 30 June 2008. This balance did not agree with Adele’s payables ledger control account balance. The following errors were discovered:
(1) A contra entry of $980 was recorded in the payable ledger control account, but not in the payable ledger
(2) The total of the purchase returns journal was undercast by $1000
(3) An invoice for $4344 was posted to the supplier’s account as $4434
What amount should Adele report in its statement of financial position as accounts payable at 30 June 2008?
A $436,830
B $438,010
C $439,790
D $437,830
Why the answer is D, not A?
D is 438900-980-90=437830. But why (2 - $1000) didn’t be deducted?