An entry to record the payment to a vendor was correctly recorded and posted to the general ledger but was not posted to the subsidiary ledger. This error will cause
A) net income to be overstated.
B) net income to be understated.
C) the accounts payable control account to not agree with the subsidiary ledger.
D) the accounts receivable control account to not agree with the subsidiary ledger.

Question

Quizplus · Accepted Answer

Since the payment was not recorded in the subsidiary ledger, the balance in the accounts payable control account in the general ledger will not agree with the total of the balances in the individual vendor accounts in the subsidiary ledger. This will cause a discrepancy between the control account and the subsidiary ledger, making option C the best choice. The payment not being recorded in the subsidiary ledger will not affect net income, so options A and B are incorrect. Option D is also incorrect since the scenario described in the question references a payment to a vendor, not a receipt from a customer.

An Entry to Record the Payment to a Vendor Was