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In relation to trade payables at the year end of 30 april 20×1, Jitka plc has found that
a) contra of 85 with trade receivables is required.
b) early settlement disocunt of 2220, which was taken appropriately by a credit customer, are credited to revenue and debited to trade payables. The company had not expected the customer to take the disocunt. before these discoveries , the balance on trade payables was 72560. In its balance sheet, Jitka plc will have a figure for trade payables
a) 70255
b) 74695
c)74865. I was wondering sir, does this question come under supplier statement reconciliation in the lecture notes.No, because there is no mention of the balance on the suppliers statement.
It is actually a question relating to control accounts, but they are no longer examinable. However if you treat as all relating to one supplier then you should still be able to calculate the correct balance owing and for this the chapter on supplier statement reconciliation is indeed relevant.
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