Question

Bhola purchases goods on credit from various suppliers. However, there is a difference of opinion which has arisen with one of its suppliers. While the Supplier claims that the amount receivable from Bhola is Rs.1,51,800, on the other hand, Bhola claims that the amount payable is Rs.1,41,000. On evaluation of records the following were identified: 

(i) A purchase of Rs.42,600 was recorded by the supplier as Rs.46,800. 

(ii) Goods returned by Bhola amounting to Rs.3,000, but the stock is in transit and has not reached the supplier/vendor. 

(iii) Cheques issued to vendor for Rs.16,800, in transit. 

(iv) Bills raised for goods purchased from the supplier, amounting Rs.13,200, but goods are yet to reach the warehouse/godown of Bhola. Prepare a suitable reconciliation statement.

Answer 1

Amount Due to Supplier – Payable Reconciliation Statement 

Particulars	Amount
Amount due to supplier (as per books of the Supplier)	1,51,800
Less: Overstatement of sales figure in the books of supplier (i.e. goods sold by supplier to Bhola for Rs.42,600 but recorded as Rs.46,800)	4,200
Less: Goods returned to supplier, now in transit	3,000
Less: Cheques issued to vendor, now in transit	16,800
Add: Bills raised against goods purchased, not stock-in-transit, i.e. not yet reached the warehouse of Bhola	13,200
Amount due to supplier (as per books of Bhola)	1,41,000