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SSC Financial and Cost Accounting P-1 QUESTION #6079
Question 1

The total of Konrad's purchases ledger balances was $57,400. Later, these errors were found:

Discount allowed overcast in cash book$2,000
Returns outwards omitted in a supplier's account$350
Payments to trade payables undercast in cash book$137
Purchases journal overcast$500

What is the corrected total of the trade payables balances?

  • $54,413
  • $54,913
  • $55,050
  • $57,050✔️
Correct Answer Explanation

Only errors affecting individual supplier accounts change the purchases ledger total.
1. Returns outwards omitted: $57,400 - $350 = $57,050.
The others (Discount allowed, payments undercast in cash book, journal overcast) affect the Control Account or other ledgers, but not the individual ledger balances until corrected there.