ExpertMedium2 marksMultiple Choice
ACCA · Question 20 · Preparing a trial balance
A supplier sends a statement showing a balance due of $3,400. Your payables ledger account for this supplier shows a credit balance of $2,900. Which of the following could explain the difference?
A supplier sends a statement showing a balance due of $3,400. Your payables ledger account for this supplier shows a credit balance of $2,900. Which of the following could explain the difference?
Answer options:
A.
An invoice for $500 received from the supplier but not yet entered in your ledger
B.
Cash in transit of $500 sent to the supplier but not yet received by them
C.
A payment of $500 sent to the supplier but not yet processed by them
D.
A discount of $500 claimed by you but rejected by the supplier
How to approach this question
Identify which transaction would cause the supplier's statement to be higher than your ledger.
Full Answer
C.A payment of $500 sent to the supplier but not yet processed by them✓ Correct
If you have sent a payment of $500, you will have debited the supplier's account, reducing your ledger balance to $2,900. If the supplier has not yet received or processed this payment, their statement will still show the higher balance of $3,400.
Common mistakes
Confusing the direction of the adjustment.
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