trial balance!!!
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hi all im a bit confused here...<BR><BR>if a purchases invoice has been incorrectly calculated by our supplier...after being entered into our accounts wrong would it affect the trial balance???<BR><BR>i cant work out what the correct term for this entry is (mispost,error of principle etc) so really if im putting it into one of these categories it would not show in the trial balance!!!<BR><BR>aaaaaaaah<BR><BR>thanks <BR><BR>rob
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trial balance!!!
Hi Rob,<BR><BR>This was actually a question in the Foundation exam last year and the answer is no it would not affect the Trial Balance. The creditors account would have the incorrect invoice on it and this would be reflect in the Creditors Control account. i.e. everything would balance.<BR><BR>The invoice would need to be corrected by the supplier with say a credit note if they have overcharged, this credit note would then go on their account and this would then be reflect in the Creditors Control account.<BR><BR>Hope this makes sense.<BR><BR>KS0 -
trial balance!!!
I'd get hold of who's responsible for processing invoices, give them a slap and tell him/her to check them before entering. <img src="i/expressions/face-icon-small-smile.gif" border="0"><BR><BR>Otherwise, it's an error of original entry and wouldn't show up on the trial balance unless there was a casting error on the invoice when adding the VAT e.g<BR><BR>Goods £100<BR>Vat £17.50<BR>Total 107.50<BR><BR>which would obviously give a £10 discrepancy in the trial balance <BR><BR>Chris0