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Balance on the payables ledger control account

At 1 May 20X8, the payables ledger control account showed a balance of $35,580.

At the end of May the following totals are extracted from the subsidiary books for May:

$
Purchases day book 45,950
Returns outwards day book 6,873
Returns inwards day book 3,310
Payments to payables, after deducting $358 cash discount 49,090

It is also discovered that:

(a)The purchase day book figure is net of sales tax at 20%; the other figures all include sales tax.

(b)A customer’s balance of $605 has been offset against his balance of $913 in the payables ledger.

(c)A supplier’s account in the payables ledger, with a debit balance of $200, has been included on the list of payables as a credit balance.

What is the corrected balance on the payables ledger control account?

Answer

PAYABLES LEDGER CONTROL ACCOUNT
$ $
Returns outwards 6,873 Balance b/f 35,580
Payments to payables 49,090 Credit purchases (45,950 x 1.20) 55,140
Discount received 358
Contra 605
Balance c/f 33,794            –
90,720 90,720
Balance b/f 33,794
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