The sum of the credit balances in the individual trade payables ledgers is different from the balance in the trade payables control account. It is discovered that a purchase of £40,000 had been posted to a supplier’s account as £44,000. This error would affect: a) Both the ledger account and the control account b) Only the control account c) Neither the ledger account nor the control account d) Only the ledger account
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
9.
The sum of the credit balances in the individual trade payables ledgers is different from the
a) Both the ledger account and the control account
b) Only the control account
c) Neither the ledger account nor the control account
d) Only the ledger account
Step by step
Solved in 2 steps
