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Which of the following would be a valid explanation for the difference in respect of Poole Co?
1 An invoice for $156,403 has been paid twice
2 An invoice for $156,403 has been posted as a debit note
3 An invoice for $156,403 has been received and processed prior to receipt of the goodsBalance per payables ledger (72,168)
Balance per supplier statement 82,348
maam agin i don’t understand why the statement 2 is false? If $156403, has been posted as a purchase returns then the payables ledger would have been debited with this amount and then we will have a DEBIT balance of $72168, precisely what the question asks for…
and also statement 3, why is it false?
or is it that goods return/debit note are non-adjustable for in payables ledger, unless they have been converted to credit note(which shows acceptance of retuned goods by supplier)?
maam this is still unclear to me. invoice should have been posted on credit side, but instead it was debited in the TPs ledger account, which led to a debit balance of $72168, so then why is this not a valid explanation of the debit balance that is reflected by the TPs ledger?
As per my post on November at 2:46 on the previously thread an invoice posted as a debit note means to the wrong side – would make twice the difference.
Here are some simply numbers:
A Co (supplier) invoices B Co (customer) for $1,000.
A Co’s statement shows “B owes me $1,000”
B Co misposts the invoice as a debit note – i.e. Debits supplier a/c $1,000 – B Co’s debit balance means “A owes B $1,000” – the difference is $2,000. B Co must make a correcting entry:
Dr Purchases 2,000
Cr Payable 2,000This is assumed knowledge of the correction of errors from FA/F3.
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