Question 1

Section A

A company's payables ledger control account shows a balance of $45,600. A supplier's statement shows a balance of $48,200. The difference is due to a payment of $2,600 made by the company on 30 December, which did not appear on the supplier's statement dated 31 December.

What is the correct payables figure to be included in the statement of financial position?

Accepted Answer

Determine which record is up-to-date. The company sent the payment, so their control account is correct. The supplier's statement is missing the payment due to a timing difference (cash in transit).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Adjusting the company's books to match the supplier's statement.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 5

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