Preparing a trial balance — ACCA Practice Question 15

How to approach this question

Determine which account is higher. The control account is $1,400 higher than the list of balances. Look for an error that increases the control account or decreases the individual balances.

Full Answer

A.A purchase invoice for $1,400 was entered in the purchase day book but omitted from the supplier's individual account✓ Correct

The control account ($45,600) is $1,400 higher than the individual ledger total ($44,200). If an invoice is entered in the day book, it is included in the total posted to the control account. If it is omitted from the individual supplier's account, the individual ledger total will be $1,400 lower than the control account.

Common mistakes

Confusing the direction of the error (e.g., choosing an option that would make the individual ledger higher).

Section A

The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the individual supplier accounts in the payables ledger is $44,200.

Which of the following errors could explain the difference?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 1

More questions from this exam

Section A The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the individual supplier accounts in the payables ledger is $44,200. Which of the following errors could explain the difference?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 1

More questions from this exam

Section A

The payables ledger control account of Orion Supplies shows a balance of $45,600. The total of the individual supplier accounts in the payables ledger is $44,200.

Which of the following errors could explain the difference?