The Creditors Ledger Account of P - Leaving Cert Accounting - Question 4 - 2010

There can be several reasons for the balancing difference between the Creditors' Control Account and the Schedule of Creditors:

1. Unposted Invoices:

   • Invoices that have been received but not yet posted will cause discrepancies as they affect the record in the Schedule without reflecting on the Control Account.

2. Incorrect Data Entry:

   • Human error in data entry can lead to incorrect figures being recorded either in the ledger or the Schedule.

3. Adjustment Not Reflected:

   • Adjustments such as discounts or credit notes may not have been appropriately reflected in both accounts, leading to mismatches.

4. Interest Misrecording:

   • Interest charged by creditors can sometimes be misrecorded or improperly reflected due to the adjustment process causing discrepancies.

5. Errors in Totalling:

   • Any error in totaling the subsidiary accounts which feed into the Control Account can lead to differences showing up in the reconciliation.

6. Timing Differences:

   • Transactions recorded in one period may not be updated in the Control Account due to timing differences, which reflect only when they are recognized in the books.