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For the following errors:
1) the closing balance of the purchase ledger control account at the current year end has been undercast by $160My confusion is : this Purchase ledger control a/c means Account Payables Control A/c or is it Purchase ledger A/c?? Which entry should I pass
A) Dr….Suspense or B) Dr…..Purchase Ledger
Cr….AP Cr…..SuspenseThe purchase ledger control account is another name for the payables control account (i.e. total payables) as I explain in my free lectures on books of prime entry.
The balance is a credit balance and therefore if it has been undercast we need to increase it. So Cr the control account and Dr the suspense account.
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