The following errors have been discovered: (a) An invoice for 654 has been entered in the Purchases
Question:
The following errors have been discovered:
(a) An invoice for £654 has been entered in the Purchases Day Book as £456.
(b) A prompt payment discount of £100 from a supplier has been completely omitted from the books.
(c) Purchases of £250 had been entered on the wrong side of the supplier’s account in the Trade payables ledger.
(d) No entry had been made to record an agreement to contra an amount of £600 owed against an amount of £400 receivable from the same party.
(e) A credit note of £60 from a supplier had been entered in the Control account as if it was an invoice.
Required:
The numerical effect on the Trade payable control account balance of each of the above errors.
Step by Step Answer:
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict