If the accounts payable subsidiary ledger shows the following balances on 31 July 2011,what is the balance in the accounts payable control account on the same date? Assuming recording and balancing of accounts payable records are up to date.
$\begin{array} { l l r }
\text { - } & \text { Wilson } & \$ 4000 \
\text { - } & \text { Watson } & \$ 15250 \
\text { - } & \text { Zhang } & \$ 8750
\end{array}$

Question

If the accounts payable subsidiary ledger shows the following balances on 31 July 2011,what is the balance in the accounts payable control account on the same date? Assuming recording and balancing of accounts payable records are up to date.
$\begin{array} { l l r } 
\text { - } & \text { Wilson } & \$ 4000 \
\text { - } & \text { Watson } & \$ 15250 \
\text { - } & \text { Zhang } & \$ 8750
\end{array}$

Quizplus · Accepted Answer

The balance in the accounts payable control account should equal the total of the balances in the accounts payable subsidiary ledger. Adding the balances: $4000 + $15250 + $8750 = $28000. Since accounts payable is a liability, it is a credit balance.

If the Accounts Payable Subsidiary Ledger Shows the Following Balances