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FINSTAR CO 

PAYABLES LEDGER 

ACCOUNT NAME: 

PICKETT (HANDLING EQUIPMENT) CO 

ACCOUNT REF: PO42 

DATE OF REPORT: 

1 JUNE 20X1 

Date Transaction 

(Debit)/Credit 

   

$ 

16.3.X1 Invoice 

33004 

350.70 

20.3.X1 Invoice 

33060 

61.47 

6.4.X1 Invoice 

34114 

80.05 

3.5.X1 

Invoice 34207 

129.40   

4.5.X1 Payment 

(412.17) 



 

6.5.X1 Invoice 

34242 

22.72 

 



 

19.5.X1 

Invoice 34327 

394.95   

19.5.X1 Credit 

note 

00192 

(64.40) 



 

28.5.X1 Payment 

(117.77) 

30.5.X1 Credit 

note 

00199 

 

(107.64)  

 

Balance 

 337.31 

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CHAPTER 14  

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  CONTROL ACCOUNTS 

 

247 

The payables ledger of Finstar shows a balance due to Pickett of $337.31, while Pickett's statement 

shows a balance due of $847.86. 

2.3.1 Supplier statement reconciliations  

Linda wants to be sure that her payables ledger record for Pickett is correct and so she prepares a 

supplier statement reconciliation. 

These are the steps to follow. 

 

 

2.3.2 Example: supplier reconciliation 

Linda applies the above steps to Pickett's statement. 

Step 1 

The common items have been ticked off on the statement and payables ledger above. 

Step 2 

The balance brought forward at 30.4.X1 consists of three invoices. 

 

 

 $ 

33004 

 

 350.70 

33060 

61.47 

34114 

 

  80.05 

 

 

492.22 

 

Step 3 

Invoices 33004 and 33060 were paid on 4 May and 34114 was part of the payment 

on 28 May. 

Step 4 

Pickett's statement does not show the payment of $117.77 made on 28 May. 

However, this is reasonable, as the cheque was probably still in the post. The statement 

also shows an invoice 34392 dated 21 May, which is not in the payables ledger. This 

is surprising. Finstar needs to check if the invoice has been received (using the 

purchase day book) and, if so, has it been posted to the wrong account? If it has not 

been received, Linda will need to contact Pickett and ask for a duplicate.  

SUPPLIER STATEMENT RECONCILIATION 

ACCOUNT: PICKETT (HANDLING EQUIPMENT) CO (PO42) 

 

 

$ 

Balance per supplier's statement 

 

847.86 

Less  payment (28 May) not on statement 

 

 (117.77) 

 

invoice (supplier no 34392) on statement, 

 

 

   

not on payables ledger 

 

(392.78) 

Balance per payables ledger 

 

 337.31 

 

Step 1 

Tick off the items 

which appear in both 

the statement and the 

payables ledger 

Step 2 

Agree the opening 

balance on the 

supplier's statement 

Step 4 

Identify differences 

Step 3 

Allocate payments to 

invoices after allowing 

for any credit notes 

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