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Reconciling payables ledger with payables control account

Reconciling payables ledger with payables...

Hi all,

Hope I'm posting this in the right place, and that it's allowed.

My question pertains directly to the F3 Pilot Paper provided on ACCAs own website; specifically, question 18.

I'll reprint it here, in full, for ease:

The total of the list of balances in Valley’s payables ledger was $438,900 at 30 June 20X6. This balance did not
agree with Valley’s payables ledger control account balance. The following errors were discovered:
 
(1) A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger.
(2) The total of the purchase returns daybook was undercast by $1,000.
(3) An invoice for $4,344 was posted to the supplier’s account as $4,434.
 
What amount should Valley report in its statement of financial position for accounts payable at 30 June 20X6?
 
A $436,830
B $438,010
C $439,790
D $437,830
 
The answer given is:
D.
 
438,900
(980)
(90)
437,830
 
I absolutely cannot fathom why they have not included the second error. Surely you would debit that amount to the total creditors, too?
 
Any help here would be much appreciated :)

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21st May 2012 16:23

Formatting seems to have been lost in translation...

Apologies.

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By alattax
21st May 2012 16:51

Re-read the question.

It asks "What amount should Valley report in its statement of financial position for accounts payable at 30 June 20X6?"

Your only known starting figure is the total of the list of balances, and error (2) does not affect that list as it is only an error in the control account.

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21st May 2012 17:00

Thanks a lot.

So, then:

the individual amounts are posted from the day book to the ledger and the totals to the control account?

If so, that is far clearer. 

 

Thanks for your help!

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By 3569787
03rd May 2016 17:54

Glad I don't do exams anymore!

!

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