Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:
A) When the purchases journal is posted to the general ledger.
B) When the sum of the vendor accounts does not equal the balance in the Purchases journal.
C) When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.
D) When the creditors receive their payments.
E) When the financial statements are prepared.

Question

Quizplus · Accepted Answer

The error in totaling the journal's accounts payable column would be discovered when the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account in the general ledger. This comparison is meant to ensure that the detailed individual balances (schedule of accounts payable) match the total balance reported in the general ledger for Accounts Payable.

Assume That a Company Using a Purchases Journal Made an Error