Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A business keeps control accounts as part of its double entry system. The balance on the purchases ledger control account is $\$8232$. However, this does not match the total of the balances in the purchases ledger. The difference is explained by the following. 1. An item in the purchases returns journal for $\$72$ has been entered on the credit side of the individual trade payable’s account in the purchases ledger. 2. An item for discounts received in the cash book for $\$54$ has been entered in the purchases ledger as a debit to the individual trade payable’s account for $\$45$. What was the total of balances in the purchases ledger before these errors were corrected?

  • A$\$8079$
  • B$\$8097$
  • C$\$8367$
  • D$\$8385$

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