Flashcards in Chapter 7: Prepare payments to suppliers Deck (6)
When is a business ordering goods ready to settle up the supplier's account in the purchases ledger?
When it has checked all the financial documents:
What is a common practice for a supplier to send each customer?
Sending a statement of account to each customer
Listing all the transactions
(Sales, Returns, Payments)
Which will then be recorded in the Purchases Ledger Account.
The process where the customer checks that the items on the supplier's statement of account.
With the items in the supplier's account in the purchases ledger.
What must be done with any discrepancies between the supplier's statement of account and the purchases ledger?
They must be identified and investigated.
They will affect the amount of money that will be paid to the supplier.
How is payment of the buyer's account made?
The amount is calculated by totaling authorised invoices due for payment
& deducting any authorised credit notes & discrepancies that have been found.