CHAPTER 15 Flashcards
The Payables Ledger
1
Q
Debits balance in payable ledger
A
- Overpayment of supplier
- Credit note received after full payment has been made
2
Q
Other payables
A
- Wages & salaries
- Taxes (Sales tax, Payroll tax)
- Sundry payable (purchase of NCA)
3
Q
Overhead expenditure such as rent may be processed in payable ledger
Yes/No
A
Yes but also may be separately processed
4
Q
Special categories of payables which need to be shown separately in SOFP
A
1) Company Tax
2) Bank Loan
3) Bank overdraft
5
Q
Reasons for reconciling supplier statement
A
- Payment in transit
- Omitted invoice & credit note
- Other errors
6
Q
Payment methods to supplier
A
- Cash (rare)
- Cheque (dulu ye sekarang rare)
- Interbank transfer (increasingly common)
etc : automated credit system/online banking
7
Q
Age analysis of payables
A
- Shows age profile of supplier balances on payable ledger
- Indicates how quickly the business is paying off its debts
8
Q
Effect of delaying payment to supplier for longer than necessary
A
- Losing discounts
- Lose supplier goodwill
- Lose facility to buy on credit
