Question

Benefits of preparing trade payables ledger control account​

Answer 1

The benefits of preparing a trade payables ledger control account include accuracy, control, and reconciliation.

Step-by-step explanation:

The benefits of preparing a trade payables ledger control account include:

1. Accuracy: By preparing a trade payables ledger control account, you can ensure the accuracy of your financial records. It helps in avoiding any errors or discrepancies in recording trade payables.
2. Control: The control account provides a summary of all the trade payables, allowing you to monitor and control your outstanding balances effectively. It helps in identifying any overdue payments and managing cash flow.
3. Reconciliation: A trade payables ledger control account enables easy reconciliation with the individual supplier accounts. It ensures that all transactions are accounted for and discrepancies are promptly identified and resolved.