Purchases ledger control account balance: 8,232. Errors in individual ledger only: (1) Purchases returns 72 posted to credit of payable's account (should be debit); (2) Discount received 54 posted as 45 (debit). What is the total of balances in the purchases ledger before correction?

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SSC Financial and Cost Accounting P-1 QUESTION #6138

Question 1

Purchases ledger control account balance: $8,232. Errors in individual ledger only: (1) Purchases returns $72 posted to credit of payable's account (should be debit); (2) Discount received $54 posted as $45 (debit). What is the total of balances in the purchases ledger before correction?

$8,079
$8,097
$8,367
$8,385✔️

Correct Answer Explanation

Option D ($8,385) is correct.

Error 1: Returns $72 credited instead of debited → payable's balance overstated by $144 (wrong side = double error).

Error 2: Discount posted as $45 instead of $54 → understated by $9.

Ledger total = $8,232 + $144 + $9 = $8,385

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