Provide examples of payables, other than trade payables.
1.1
What accounting entries are required in the general ledger to record purchases returns?
1.2
What accounting entries are required in the general ledger to record a contra?
2.2
What is an aged payables analysis?
3.2
Why should management be interested in an aged payables analysis?
3.2
1. Which of the following will appear as a debit entry in the general ledger?
2. Which is not a reason for maintaining an aged payables analysis?
3. KL Co made a purchase of goods from a credit supplier. The list price of the goods purchased was $1,000, on which trade discount of 10% was allowed and sales tax of 15% applied. What was KL Co's total liability to the supplier?
4. OP Co made a purchase of goods from a supplier. The list price of the goods purchased was $2,500, on which trade discount of 10% was allowed and sales tax of 15% applied. How much input sales tax did OP Co record in its general ledger on this transaction?
5. Yu Co made a payment to a credit supplier. The list price of the goods purchased was $800, on which trade discount of 20% was allowed and sales tax of 5% applied. What was YU Co's input tax liability on this transaction?
For suggested answers, see the 'Answers' section at the end of the book