Im a bookkeeper and i taken over from someone... i discovered that the "accounts payable" is hugely overstated and out by more than a million to what we actually owe. I think things were captured incorrectly
over the past 6 years so this Liability is still on our balance sheet...
I have recon all the suppliers and we actually owe R400 000 roughly so i need to adjust the "accounts payable" by R600 000.
When i did the recon i adjusted the suppliers balances to a "account payable control account". So the R600 000 odd balance is there now.
Please would someone tell me the accounting transaction to legally and correctly fixing this to reflect the correct accounts payable. I have no idea where to journal this to and what the bigger picture will be.
please note im new to bookkeeping and have limited experience...