controls and transaction relate to payable and purchase

EElaine3y ago

Which of the following is an aim of the control system relating to payables and purchases? A. To ensure that all credit notes received are recorded in the general and payable ledger B. To ensure that goods and services are only supplied to customers with good credit ratings C.To ensure that all credit notes that have been issued are recorded in the general and receivables ledgers D. To ensure that potentially doubtful debts are identified. The correct answer is A. Question: 1. Which transactions and controls relate to payables/purchases and which to receivables/sales? 2. What should be recorded in the general and payable ledger and what should be in general and receivable ledgers?

kengarrettTutor3y ago#1

Payables/purchases: On receipt of invoice from supplier Dr Purchases Cr Payables Need to xheck that the goods were ordered and received. If goods are returned a credit note should be issued by the supplier Dr Payables Cr Purchases/ goods returned Need to ensure all returns receive a credit note. For sales: Ensure an invoice is issued for all dispatches then Dr Receivables Cr Sales Need to follow up to ensure payment is received If the customer returns the goods issue a credit note and Dr Sales Cr Receivables.