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Tau issued a statement to one of its customers, Ancona Co for the month ended 28 February 20X5. At that date, the payable ledger account for Tau maintained by Ancona Co had a balance of $4,575.
A review of Ancona Co’s payable ledger account for Tau and the supplier statement revealed the following differences:
1 – Ancona Co had not recorded a credit note for $18 recently issued by Tau
2 – An invoice on the statement from Tau for $875 related to another customer and had been included in in error.
What was the balance on the statement Issued by Tau for the month ended 31 October 20X5 ?
A $4,557
B $5,432
C $4,593
D 53,682
what should be the answer? is it A or B, and why
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved publishers because it has answers and explanations 🙂
In Anconas books they are showing a balance owing to Tau of 4575. However they had not recorded a credit note received from Tau and show the correct balance owing to Tau is 4575 – 18 = 4557.
In Taus books they should therefore be showing a balance of 4557 owing from Ancona. However they has included on their statement 875 which was for another customer and not owing from Ancona. Therefore their statement will have been showing a balance owing of 4557 + 875 = 5432.
Do the correct answer is B.
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