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hi Sir ,
Peter Receive a statement of account from a supplier Paul , showing a balance to be paid of $8950. Peter’s Payables ledger account for Paul show a balance due to Paul $4140.
Investigation reveals the following :
(1) Cash paid Paul $4080 has not yet been entered by paul
(2) Peter ledgers Account for Paul has not been adjusted for $40 of cas discount disallowed by paulWhat discrepancy remain between them after allowing for these items
A. 770
B.690Ans : B
Y not A ?
Thank You .Cash paid to Paul of 4080 needs entering by Paul which will mean that Paul’s statement should show a balance of 8950 – 4080 = 4870
A discount of 40 not allowed by Paul needs entering by Peter and will mean that Paul’s account in Peter’s books should show a balance of 4140 + 40 = 4180
So the difference remaining is 4870 – 4180 = 690.
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