Simon’s year-end Trial Balance (with other items reported in summary) is shown below. Although the totals on both sides of the Trial Balance are the same, the sum of the list of individual trade receivables and payables, amounting to £203,000 and £147,000 respectively, failed to match the Control account balances. Further inquiries revealed the following:

(i) A folio in the Sales Day Book has been added as £18,600 instead of £14,600.

(ii) £9,000 offset by contra between the Trade receivables ledger and Trade payables ledger is not reflected in the Control account balances.

Required:

(a) Prepare a reconciliation of the Control account balances with the sum of individual personal accounts balances.

(b) Set out any journal entry needed to correct errors.

(c) Prepare a revised Trial Balance including in it the corrected Control account balances.

Transcribed Image Text:

Trial Balance as at 30.6.2012 Purchases/sales Trade receivables control Trade payables control All other item balances £'000 632 216 - 2,944 3,792 £'000 984 - 156 2,652 3,792