12.5 The mechanism of a control account reconciliation:
　　●A list of individual balances is prepared from the personal ledger.
　　●The total of the list of balances is compared with the balance on the control account
　　●Any discrepancies are followed up and appropriate adjustments made.
　　Example:
　　At 1 April 20x9, the payable ledger control account showed a balance of $14,2320. At the end of April the following totals are extracted from the subsidiary books for April:
　　$
　　Purchases day book 　　　　　　　　　　　　　　　　　　　　　　　　183,800
　　Returns outwards day book　　　　　　　　　　　　　　　　　　　　　 27,490
　　Returns inwards day book　　　　　　　　　　　　　　　　　　　　　　13,240
　　Payments to payables, after deducting $1,430 cash discount　　　　 196,360
　　It is also discovered that:
　　(a)The purchase day book figure is net of sales tax at 17.5.%; the other figures all include
　　Sales tax.
　　(b)A customer’s balance of $2,420 has been offset against his balance of $3,650 in the
　　Payables ledger.
　　(c)A supplier’s account in the payables ledger, with a debit balance of $800, has been
　　Included on the list of payables as a credit balance.
　　What is the corrected balance on the payables ledger control account?
　　A.$130,585
　　B.$144,835
　　C.$98,429
　　D.$128,985
　　Solution: A. $130,585