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This is a part of the full question:
Celine discovered the following errors:
(i) A payment of 1700 in full settlement of a balance of 1714 was correctly recorded on the supplier’s account but only 1700 was posted to the control account.
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I think the kit is wrong. The first figure should be 1714 for full settlement.
The payment figure is wrong.Am I right?
Thanks!
If the amount of payment is 1700 and the posting to the control account is 1700, then there is no error.
I think you are correct….unless there is somethi g going on with a settlement discount of 14. But that should have been made clear.
This is the complete question :
While carrying out the reconciliation of the balance on the payables control account in the general ledger with the list of balances from the payables ledger,
Celine discovered the following errors:(i) A payment of 1700 in full settlement of a balance of 1714 was correctly recorded on the supplier’s account but only 1700 was posted to the control account.
(ii) The total of the purchase day book was understated by 900.
(iii) A supplier’s credit note was incorrectly recorded the day book as invoice.
(iv) No entries were made to record an arrangement to offset a balance of $620 against a balance in the receivables ledger.
Which of the above require a correcting entry in the general ledger?
A. (i) and (ii) only
B. (ii) and (iii) only
C. (iii) and (iv) only
D. (i), (ii), (iii) and (iv)
Now, isn’t the first part (i) wrong?
Thanks Sir!
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