ACCOUNTS PAYABLE
1. Prove mathematical accuracy of the purchases books.
The input tax have been erroneously calculated.*
2. Trace postings of purchase book totals to general ledgers. (In the audit of cash, the
payments were already vouched).
There was no journal entry in the general journal for the December 31, 2011 posted
in the general ledger – Accounts Payable of ₱ 4,123,275.00
3. Trace CV postings to AP subsidiary ledgers.
CV 306 - Amount was understated by ₱ 1,399,050.00 in the Accounts Payable –
Subsidiary Ledger.
CV 311 - Amount deducted with the discount of ₱1,700.00 but was not reflected in
the Accounts Payable – Subsidiary Ledger.
CV 314 - Amount deducted with the discount of ₱2,560.00 but was not reflected in
the Accounts Payable – Subsidiary Ledger. However, the correct amount is
₱311,250.00 as stated in the Purchase Invoice. The correct discount is ₱ 6,225.00
CV 316 - Amount deducted with the discount of ₱260.00 but was not reflected in
the Accounts Payable – Subsidiary Ledger.
4. Trace purchase invoice postings to the AP subsidiary ledger.
PI 140 – The correct amount for the purchase is ₱311,250.00.
5. Prove mathematical accuracy of the AP subsidiary ledger.
The subsidiary ledger has been traced. There were incorrect computations with the
amount reflected in the Subsidiary Ledger of Arboleda Co., Inc. and Genius Paper
Products. However the ledger of Sapphire Corporation has no error.
6. Make a schedule of AP December 31, 2011
7. Reconcile total of AP subsidiary ledger with the GL AP account.
8. Post subsequent payments on AP.
Correct Purchases Book
PURCHASE BOOK
DATE PURCHASED FROM TERMS INV NO. ACCOUNTS PAYABLE Inventory INPUT TAX
Dec.1 Arboleda Co. Inc 101 413,750.00 369,419.64 44,330.36
2 Genius Paper Products 111 1,425,000.00 1,272,321.43 152,678.57
3 Sapphire Corporation 1082 459,600.00 410,357.14 49,242.86
6 Genius Paper Products 127 1,600,000.00 1,428,571.43 171,428.57
7 Arboleda Co. Inc 107 34,200.00 30,535.71 3,664.29
9 Arboleda Co. Inc 112 87,500.00 78,125.00 9,375.00
10 Genius Paper Products 130 1,250,000.00 1,116,071.43 133,928.57
12 Sapphire Corporation 1090 14,000.00 12,500.00 1,500.00
15 Genius Paper Products 135 13,250.00 11,830.36 1,419.64
16 Arboleda Co. Inc 117 85,000.00 75,892.86 9,107.14
18 Sapphire Corporation 1095 85,000.00 75,892.86 9,107.14
20 Genius Paper Products 140 311,250.00 277,901.79 33,348.21
21 Arboleda Co. Inc 120 5,000.00 4,464.29 535.71
22 Genius Paper Products 145 130,000.00 116,071.43 13,928.57
23 Sapphire Corporation 1099 12,250.00 10,937.50 1,312.50
24 Arboleda Co. Inc 127 25,750.00 22,991.07 2,758.93
26 Genius Paper Products 147 45,000.00 40,178.57 4,821.43
27 Sapphire Corporation 1100 13,325.00 11,897.32 1,427.68
28 Genius Paper Products 151 165,000.00 147,321.43 17,678.57
29 Arboleda Co. Inc 130 19,125.00 17,075.89 2,049.11
29 Genius Paper Products 7729 252,250.00 225,223.21 27,026.79
30 Arboleda Co. Inc 825 155,600.00 138,928.57 16,671.43
Total 6,601,850.00 5,894,508.93 707,341.07
Accounts Payable – Subsidiary Ledger (Corrected)
Name: Arboleda Co., Inc. Account No.: 1001
Address: 456 Quezon Boulevard Extension, Quezon City
Date Particulars Dr. Cr. Balance
2011
11/30 Balance 1,554,500.00
12/1 PI 101 413,750.00 1,968,250.00
12/10 CV 304 175,000.00 1,793,250.00
12/10 CV 306 1,554,500.00 238,750.00
12/16 PI 117 85,000.00 323,750.00
12/20 CV 311 85,000.00 238,750.00
12/24 PI 127 25,750.00 264,500.00
12/26 CV 316 25,750.00 238,750.00
12/29 PI 130 19,125.00 257,875.00
Name: Genius Paper Products Account No.: 1003
Address: 951 Del Sol Avenue, PasayCity
Date Particulars Dr. Cr. Balance
2011
11/30 Balance 1,906,500.00
12/1 Converted to 90-day 24% note 1,906,500.00 -
12/2 PI 111 1,425,000.00 1,425,000.00
12/2 CV 300 300,000.00 1,125,000.00
12/6 PI 127 1,600,000.00 2,725,000.00
12/6 Converted to 27% 150-day note 1,600,000.00 1,125,000.00
12/10 PI 130 1,250,000.00 2,375,000.00
12/15 CV 309 625,000.00 1,750,000.00
12/20 PI 140 311,250.00 2,061,250.00
12/22 PI 145 130,000.00 2,191,250.00
12/26 PI 147 45,000.00 2,236,250.00
12/26 CV 313 2,236,250.00
12/26 CV 314 127,875.00 2,108,375.00
12/26 CV 315 25,000.00 2,083,375.00
12/28 PI 151 165,000.00 2,248,375.00
GRACE CORPORATION
Schedule of Accounts Payable
December 31, 2011
INVOICE PURCHASED TERM PI. DATE of DUE
Balance
DATE FROM S NO DISCOUNT DATE
2/10,
12/1 Arboleda Co., Inc. 101 12/10 12/31 413,750.00
n/30
Genius Paper 2/10,
2 111 12/12 1/16 1,425,000.00
Products n/45
Sapphire 2/10,
3 1082 12/13 1/2 459,600.00
Corporation n/30
7 Arboleda Co., Inc. n/30 107 - 1/6 34,200.00
9 Arboleda Co., Inc. n/30 112 - 1/8 87,500.00
Genius Paper 2/10,
10 130 12/20 1/24 1,250,000.00
Products n/45
Sapphire
12 n/30 1090 - 1/11 14,000.00
Corporation
Genius Paper
15 n/30 135 - 1/14 13,250.00
Products
2/10,
16 Arboleda Co., Inc. 117 12/26 1/30 85,000.00
n/45
Sapphire
18 n/30 1095 - 1/17 85,000.00
Corporation
Genius Paper 2/10,
20 140 12/30 2/3
Products n/45 311,250.00
21 Arboleda Co., Inc. n/30 120 - 1/20 5,000.00
Genius Paper 2/10,
22 145 1/1 1/21 130,000.00
Products n/30
Sapphire
23 n/15 1099 - 1/7 12,250.00
Corporation
1/10,n/
24 Arboleda Co., Inc. 127 1/3 1/13 25,750.00
20
Genius Paper bal
26 147 - 1/10 45,000.00
Products n/15
Sapphire
27 n/30 1100 - 1/26 13,325.00
Corporation
Genius Paper 2/10,
28 151 1/7 1/27 165,000.00
Products n/30
1/10,n/
29 Arboleda Co., Inc. 130 1/8 1/13 19,125.00
15
Genius Paper
29 n/30 7729 - 1/28 252,250.00
Products
30 Arboleda Co., Inc. n/30 825 - 1/29 155,600.00
Total 4,350,170.00
