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The payables ledger account of Tiny Ltd in the books of Vasty shows a balance of $3,000 at the end of March,2007. This was different from the balance in the statement provided by Ting Ltd. The following were the causes of this difference:
(i) Purchase not recorded by Vasty Ltd of $200
(ii) Discount of $250 was not recorded by Tiny LtdWhat is the balance according to Tiny Ltd after reconciling the above errors?
Answer: $3,200
Can you explain to me ?
Hai,
The balance according to Tiny Ltd after reconciling is $3,200, this is because the original purchase was $ 3,250, in the books of Tiny Ltd and then a discount was given for $250, this will reduce the purchasing invoice by $250, sums up to $3,200.
In the books of Vasty from $ 3,000 to add $ 200 to total up $ 3,200. Then the books will be balance.
The invoice should be $3,450 not $3,250.
Hi everyone
I’ve just started chapter 16, Control Accounts, and under control account reconciliation I can’t understand those errors that affect payables/receivables ledger accounts only and and those that affect payables/receivables ledgers control accounts only as well as those that affect both accounts.
May someone help.
Thank you.
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