ExpertEasy2 marksMultiple Choice
ACCA · Question 14 · The Use of Double-Entry and Accounting Systems
Section A
A company's payables ledger control account shows a balance of $45,600. A supplier's statement shows a balance of $48,200. The difference is due to a payment of $2,600 made by the company on 30 December, which did not appear on the supplier's statement dated 31 December.
What is the correct payables figure to be included in the statement of financial position?
Section A
A company's payables ledger control account shows a balance of $45,600. A supplier's statement shows a balance of $48,200. The difference is due to a payment of $2,600 made by the company on 30 December, which did not appear on the supplier's statement dated 31 December.
What is the correct payables figure to be included in the statement of financial position?
Answer options:
A.
$45,600
B.
$48,200
C.
$50,800
D.
$43,000
How to approach this question
Determine which record is up-to-date. The company sent the payment, so their control account is correct. The supplier's statement is missing the payment due to a timing difference (cash in transit).
Full Answer
A.$45,600✓ Correct
The company's ledger correctly reflects the payment made. The supplier's statement is higher because the payment is in transit. No adjustment is needed to the company's books. The correct liability is $45,600.
Common mistakes
Adjusting the company's books to match the supplier's statement.
Practice the full ACCA FA — Financial Accounting Practice Exam 5
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