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Zorluk: OrtaControl Account Error Corrections and Ledger Reconciliation

The Purchases Ledger Control Account of Mensah Trading Enterprise showed a credit balance of ₦145,000\text{₦}145,000 at the end of the financial year. Upon audit and reconciliation of the control account, the following errors were discovered:

1. A payment of ₦8,500\text{₦}8,500 to a supplier was recorded in the cash book but completely omitted from the Purchases Ledger Control Account.
2. Discount received of ₦1,200\text{₦}1,200 was mistakenly entered on the credit side of the Purchases Ledger Control Account.
3. Credit purchases of ₦4,600\text{₦}4,600 were incorrectly entered in the purchases day book as ₦6,400\text{₦}6,400 and posted to the control account.

What is the adjusted credit balance of the Purchases Ledger Control Account?

  1. ₦132,300\text{₦}132,300Cevap
  2. B
    ₦133,500\text{₦}133,500
  3. C
    ₦135,900\text{₦}135,900
  4. D
    ₦137,100\text{₦}137,100

Cevap

The adjusted credit balance of the Purchases Ledger Control Account is ₦132,300\text{₦}132,300.
The correct adjusted balance of ₦132,300\text{₦}132,300 is determined by deducting all debit corrections from the initial credit balance of ₦145,000\text{₦}145,000. The omitted payment reduces the liability by ₦8,500\text{₦}8,500. The discount received credited in error requires a debit entry of ₦2,400\text{₦}2,400 (doubled to undo the credit and post to debit). The overstatement of purchases in the day book requires a debit entry of ₦1,800\text{₦}1,800 (6,400−4,6006,400 - 4,600). Total debit adjustments equal ₦12,700\text{₦}12,700, giving ₦145,000−₦12,700=₦132,300\text{₦}145,000 - \text{₦}12,700 = \text{₦}132,300.

Adım Adım Çözüm

1
Identify the unadjusted balance
Unadjusted Credit Balance = ₦145,000\text{₦}145,000
This is the starting point prior to applying error corrections.
2
Correct the omitted payment to supplier
Debit Purchases Ledger Control Account by ₦8,500\text{₦}8,500
Payments to suppliers reduce the liability owed to creditors.
3
Correct the misplaced discount received
Debit Purchases Ledger Control Account by ₦2,400\text{₦}2,400
Discount received should be on the debit side. Since ₦1,200\text{₦}1,200 was credited mistakenly, double the amount (₦1,200×2=₦2,400\text{₦}1,200 \times 2 = \text{₦}2,400) must be debited to cancel the wrong credit entry and record the correct debit.
4
Correct the overstated credit purchases entry
Debit Purchases Ledger Control Account by ₦1,800\text{₦}1,800
Purchases were recorded as ₦6,400\text{₦}6,400 instead of ₦4,600\text{₦}4,600, overstating creditors on the credit side by ₦6,400−₦4,600=₦1,800\text{₦}6,400 - \text{₦}4,600 = \text{₦}1,800.
5
Compute the final adjusted balance
Adjusted Balance = ₦145,000−₦8,500−₦2,400−₦1,800=₦132,300\text{₦}145,000 - \text{₦}8,500 - \text{₦}2,400 - \text{₦}1,800 = \text{₦}132,300 (Credit)
Subtract total debit corrections (₦12,700\text{₦}12,700) from the unadjusted credit balance.

Anahtar Kavram

Purchases Ledger Control Account Error Correction
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Konular

Control Account Error Corrections and Ledger Reconciliation

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