A company prepared its purchases ledger control account, which showed a balance of $15 960.
The following items were then discovered.

1 Discounts received of $450 had been entered into the purchases ledger control account as $540.
2 A payment of $720 to a supplier had not been entered in his account.
3 The purchases ledger debit balances carried down totalling $110 had been omitted from the control account.
4 A contra of $170 had been entered in the purchases ledger but not in the purchases ledger control account.

What was the correct total of the trade payables?

Q: What topic does this question test?

This question tests Control Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2024 examination, Paper 1 Variant 2 (9706_m24_qp_12.pdf).

Question

A company prepared its purchases ledger control account, which showed a balance of $15 960.
The following items were then discovered.

1 Discounts received of $450 had been entered into the purchases ledger control account as $540.
2 A payment of $720 to a supplier had not been entered in his account.
3 The purchases ledger debit balances carried down totalling $110 had been omitted from the control account.
4 A contra of $170 had been entered in the purchases ledger but not in the purchases ledger control account.

What was the correct total of the trade payables?

Oracle Prep · Accepted Answer

The correct answer is C: $15990.

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