- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
the closing bal of purchase ledger control a/c at the year end had been undercast by 160.
why the adjustment isdr suspense a/c
cr purchase a/c
instead of dr purchse, cr suspense a/c?thank you!
The purchase ledger control account is another name for total payable, which therefore has a credit balance.
If it has been undercast, then to correct it we need to credit the control account and therefore debit the suspense account.
(The error does not affect the purchases account at all!)
I do suggest that you watch my free lectures on Books of Prime entry. The lectures are a complete free course for paper F3 and cover everything needed to be able to pass the exam well.
thank your for your detailed explanation and I will watch your lecture.
thanks again.
- The topic ‘suspense acc.’ is closed to new replies.