The following Purchases Ledger Control Account PLCA was prepared for the year: Bal b/d 45,000 Bank 285,000 Credit Purchases * ? 145,000 Return outwards 12,500 Discount received 24,000 Bal c/d 78,500 297,500 297,500 It was suspected that there are some errors in the preparation of the PLCA, although the numerical values are correct except for the credit purchases. What would be the amount for credit purchases if the PLCA was to be written up correctly? 355,000 360,000 450,000 517,000

The following Purchases Ledger Control Account PLCA was prepared for the year: Bal b/d 45,000 Bank 285,000 Credit Purchases * ? 145,000 Return outwards 12,500 Discount received 24,000 Bal c/d 78,500 297,500 297,500 It was suspected that there are some errors in the preparation of the PLCA, although the numerical values are correct except for the credit purchases. What would be the amount for credit purchases if the PLCA was to be written up correctly? 355,000 360,000 450,000 517,000

Name: The following Purchases Ledger Control Account PLCA was prepared
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Description: The following Purchases Ledger Control Account PLCA was prepared for the year:Bal b/d45,000 Bank285,000Credit Purchases * ?145,000 Return outwards12,500Discount received24,000 Bal c/d78,500 297,500 297,500 It was susp

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 4DQ: In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column...

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a. At the stage of recording a credit sale transaction, please state the potential misstatements 3) Accounts receivable collection period can occur! Give examples of control risk corsiderations in credit sales transactions! 4) Uncollectible accounts receivable expense against net credit sales b. According to information taken from the accounting records of the manufacturing company PT. 5) Uncollectible Accounts Receivable Fee against the write-off of accounts receivable Hozutama b. In your opinion what are the implications of the ratio results for auditors in the audit strategy is as follows : done in year 5 Sth Year 4th Year 3rd Year 2nd Year 1st Year Unaudited Unaudited Unaudited Unaudited Unaudited Business Opportunities (Gross) Allowance for (14,150) IDR 535,000 IDR 295,000 IDR 265,000 IDR207,500 IDR175,000 (6,400) (5,275) (5,900) (5,400) Losses on Accounts Total Assets 2,200,000 2,700,000 1,800,000 2,050,000 1,500,000 1,750,000 1,200,000 1,400,000 1,000,000 1,200,000 Total Sales…
Ryan has a suspense account with a debit balance of $740. Upon investigation, the following discrepancies were found: (i) Discounts unexpectedly taken by customers of $229 have only been entered in the receivables control account (ii) Cash sales of $820 has not been recorded to the sales account, the cash has been debited to cash at bank (iii)Bank interest received of $54 has been debited to the interest income account and credited to the cash account. What is the balance on the suspense account after the errors have been corrected? DR or CR?
In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column were mistakenly underadded by 700. How will this error be discovered?
Which of the following misstatements would relate to the occurrence assertion? Cash payment shown on the payable ledger but not seen on the bank statement The individual checking the invoice is the same person making the payment to the supplier Cash payment on bank statement not reported on the payable ledger Cash received from suppliers for purchase returns reported in the next month instead of in the current month
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Which one of the following would NOT be considered as a substantive procedure? O a. Estimating payroll expense O b. Taking a sample of purchase orders to check orders over OMI 10,000 O c. Using software to identify outstanding receivables O d. Obtaining letter from bank to confirm account balance
1. You have obtained the following results from 3 receivables balances circularized during the audit of Sulpak LLP. Balance per sales ledger, KZT Balance per circularization Reason for difference response, KZT Cash in transit Goods not received at year end Disputed invoice Alfa 25,000,000 20,000,000 Beta 55,000,000 45,000,000 Zeta 68,000,000 57,000,000 Required: Detail the tests you would perform on each of these responses.
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