Determining the balance of a creditors subsidiary account


A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Indicate when each error should be discovered.

1. Made an addition error in totaling the Office Supplies column of the purchases journal.

  • When the trial balance is prepared.
  • When the schedule of accounts payable is prepared.
  • When crossfooting the purchases journal.
  • When the schedule of accounts receivable is prepared.
  • When crossfooting the cash disbursements journal.

2. Made an addition error in determining the balance of a creditor's subsidiary account.

  • When the trial balance is prepared.
  • When the schedule of accounts payable is prepared.
  • When crossfooting the purchases journal.
  • When the schedule of accounts receivable is prepared.
  • When crossfooting the cash disbursements journal.

3.Posted a purchases return to the Accounts Payable account and to the creditor's subsidiary account but did not post the purchases return to the Inventory account.

  • When the trial balance is prepared.
  • When the schedule of accounts payable is prepared.
  • When crossfooting the cash disbursements journal.
  • When the schedule of accounts receivable is prepared.
  • When crossfooting the purchases Journal.

 

4.Correctly recorded a $8,000 purchase in the purchases journal but posted it to the creditor's subsidiary account as a $800 purchase.

  • When the trial balance is prepared.
  • When the schedule of accounts payable is prepared.
  • When crossfooting the purchases journal.
  • When the schedule of accounts receivable is prepared.
  • When crossfooting the cash disbursements journal.

5.Posted a purchases return to the Inventory account and to the Accounts Payable account but did not post to the creditor's subsidiary account.

  • When the trial balance is prepared.
  • When the schedule of accounts payable is prepared.
  • When crossfooting the purchases journal.
  • When the schedule of accounts receivable is prepared.
  • When crossfooting the cash disbursements journal.

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Accounting Basics: Determining the balance of a creditors subsidiary account
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