Balance Reconciliation for Trade Payables Control Account

How can you determine the balance of the trade payables control account?

Drag the correct answers into the correct space:

(a) R29,760

(b) R986

(c) R25,481

(d) R690

(e) R1,799

(f) R450

Answer:

To determine the balance of the trade payables control account, you need to go through the given information and make the necessary adjustments. Add the total purchases and credit note, subtract the undercast, and correct any incorrect entries. The final balance is R40,031.

Explanation:

In order to determine the balance of the trade payables control account, we need to go through the given information and make the necessary adjustments. Here is the step-by-step process:

1. Start with the balance for trade payables control account on 31 October 20.9, which is R19,442.

2. Add the total purchases from the cash payment journal (R29,760) and the credit note for goods returned to S Hart (R986) from the sales return journal (recorded incorrectly).

3. Subtract the undercast of trade payables balances of R450 from the total list of trade payables balances on 30 November 20.9 (R25,481).

4. Adjust the incorrect entry of the invoice for goods purchased from B Smith (R690) by adding it to the purchases journal.

5. Correct the entry for the invoice of R1,799 against Siyanqoba Ltd by subtracting R198 (R1,997 - R1,799).

6. Calculate the final balance of the trade payables control account by totaling all the adjustments. The final balance of the trade payables control account on 30 November 20.9 is R40,031.