ExpertMedium2 marksMultiple Choice
ACCA · Question 15 · Preparing a trial balance
Section A
The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the individual supplier accounts in the payables ledger is $44,200.
Which of the following errors could explain the difference?
Section A
The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the individual supplier accounts in the payables ledger is $44,200.
Which of the following errors could explain the difference?
Answer options:
A.
A purchase invoice for $1,400 was entered in the purchase day book but omitted from the supplier's individual account
B.
A payment of $1,400 to a supplier was omitted from the cash book
C.
A purchase return of $700 was credited to the supplier's individual account instead of debited
D.
The purchase day book was undercast by $1,400
How to approach this question
Determine which account is higher. The control account is $1,400 higher than the list of balances. Look for an error that increases the control account or decreases the individual balances.
Full Answer
A.A purchase invoice for $1,400 was entered in the purchase day book but omitted from the supplier's individual account✓ Correct
The control account ($45,600) is $1,400 higher than the individual ledger total ($44,200). If an invoice is entered in the day book, it is included in the total posted to the control account. If it is omitted from the individual supplier's account, the individual ledger total will be $1,400 lower than the control account.
Common mistakes
Confusing the direction of the error (e.g., choosing an option that would make the individual ledger higher).
Practice the full ACCA FA — Financial Accounting Practice Exam 1
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