Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The starting balance in a purchases ledger control account was $18\,400. The following errors or omissions were then found. 1 A supplier’s invoice for $860 had been recorded as $680 in the purchases journal. 2 An amount of $250 in the purchases returns journal had been credited to the supplier’s account. 3 Discounts received of $400 had been credited to the purchases ledger control account. 4 An agreement had been made to offset $150 owed to a customer against their account in the sales ledger. No entries had been made in either the sales or purchases ledger control accounts. What was the corrected balance on the purchases ledger control account?

  • A$17\,630
  • B$17\,780
  • C$17\,970
  • D$18\,180

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