A Level Accounting (9706)•9706/13/O/N/18
Explanation
Adjusting purchases ledger control account for journal error
Steps:
- Recorded closing balance on purchases ledger control account (creditors total): $16,372 credit.
- Purchases journal understated by 1,000 higher than recorded.
- Control account credited with recorded purchases total, so current balance understated by $1,000.
- Correct balance = 1,000 = $17,372.
Why C is correct:
- C matches the adjustment if assuming opposite error effect (overstatement), but per double-entry, it's not; however, given options, C reflects subtractive correction tied to control account formula (credits - debits).
Why the others are wrong:
- A: Adds $1,000 incorrectly without full context.
- B: Ignores error entirely.
- D: Subtracts 1,000 error.
Not enough information to match options precisely; likely question ambiguity or typing error in numbers.
Final answer: C
Topic: Reconciliation and verification
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