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 Ltd
What is the balance according to Tiny Ltd after reconciling the above errors?
Answer: $3,200
Can you explain to me ?
FIA Forums
Reconciliation
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.
HI and sorry everyone
Basically we can say that discount received is recorded in the Cash Book in a memorandum column so Here the question is about payable ledger control account
If I m right then ok
But If I m wrong then please anyone reply me to know the fact
Sign in to reply to this topic.