- June 15, 2021 at 10:10 pm #625373shaunak22Participant
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Q No: 20
Whilst carrying out a reconciliation of the payables’ ledger control account with the payables’ ledger, Betty found that a purchase of goods for $575 had been recorded in the purchase day book as $557.
How should this error be corrected in the payables’ ledger control account and the list of balances per the
payable ledger control account list of balance
A) Debit 18 ADD 18
B) Credit 18 ADD 18
C) Debit 18 SUBTRACT 18
D) Credit 18 NO CORRECTION REQUIRED
the correct ans shown in text is (A)
DOUBTS – shouldnt the correct ans be (B) since if the entry in the purchase day book is understated by 18 then wouldnt it also understate the total and hence understating the balance on the payable ledger control account and so to correct this entry we should increase the payable ledger control account balance by 18 shouldn’t we?June 16, 2021 at 9:36 am #625409John MoffatKeymaster
- Topics: 56
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I do not know which book you are referring to (I only have the BPP Revision Kit and this is not Q20 in that book!).
Assuming that you have copied the question correctly, then the correct answer is indeed B.
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