Question

Oscar downloads his bank transaction report for the day. The report shows a cash payment of £412 which the computerised accounting system has not been able to match to a transaction.

The unmatched payment is most likely the result of:
A the purchase of a new laptop for £412
B payment to a regular credit supplier for an invoice totalling £412
C a receipt from a credit customer in respect of an invoice for £450 on which a prompt payment discount of £38 was taken
D the payment of net wages of £412 which is consistent with the payroll ledger

Answer 1

The unmatched payment of £412 is most likely due to a receipt from a credit customer who took a prompt payment discount.

The invoice amount was £450 less a £38 discount, resulting in the £412 received, explaining the once unmatched transaction in the system.

Step-by-step explanation:

The question from the student involves an unmatched cash payment of £412 in Oscar's bank transaction report. The most likely explanation for this unmatched payment is C a receipt from a credit customer in respect of an invoice for £450 on which a prompt payment discount of £38 was taken.

This makes sense because if the invoice was for £450 and the customer took a £38 discount for prompt payment, the amount that would have been received is indeed £412. This matches the unaccounted-for figure in the bank transaction report. The system might not have recognized the discount automatically, hence why the transaction is unmatched.

When facing such discrepancies, it's important to investigate promptly, as in the example where Noel notices an error in an equipment bill that would have led to an overpayment. A quick response prevented a potentially costly mistake.