• 1 Marks

FA – May 2012 – L1 – SA – Q15 – Control Accounts

Identifying items not credited to the Accounts Payable Control Account.

Which of the following items should NOT be on the credit side of Accounts Payable Control Account?

A. Total of purchases day book
B. Interest charged by suppliers
C. Transfer of debit balance to accounts receivable ledger
D. Transfer of credit balance from accounts receivable ledger
E. Set-offs

E

Explanation:
Set-offs is an expense and does not belong in the control account for payables. The correct answer is option E, as the other items directly relate to the balances in the payables control account.

 

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