How does an omitted discount received affect the PLCA reconciliation?

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Answer

If a discount received is omitted from the control account (but recorded in the supplier's personal account), the control account balance is overstated relative to the creditors list. Correction: debit the purchases ledger control account with the discount to reduce it so it agrees with the list.

Discount received 30 omitted from PLCA: Dr Purchases Ledger Control 30.

Real-world example A discount received left out of the control account overstates creditors until the control account is reduced.

Common follow-ups: Does this affect the list or the control account? | How is it corrected?

Correcting Errors Sales & Purchase Ledgers Control Accounts

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