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Sir, can you explain me how to deal with this adjustment below,
‘A supplier’s account in the payables ledger, with a debit balance of $800, has been included in the list of payables as a credit balance’A debit balance will reduce the total owing to suppliers.
They have included it as a credit balance, so it has increased the total owing.So to correct it they need to reduce the total owing by 2 x 800 = 1600. (One time to remove it as being owing to suppliers, and a second time to show it as owing back to suppliers).
Sir, if we transferred the amount of payables from purchases day book, is it like, then this adjustment will not have any effect in payables ledger control account?
It will have no effect in the control account.
It will affect the total list of payables from the payables ledger (which is what your question referred to).
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