As at 31 May 2012 the Sales ledger control account debit balance was 408,900, whereas the sum
Question:
As at 31 May 2012 the Sales ledger control account debit balance was £408,900, whereas the sum of the individual trade receivables accounts was £407,360. Investigations revealed the following errors:
(a) The discount column on the receipt side of the Cash Book was added as £2,850 instead of £1,750.
(b) A cheque for £3,500 received from Betty Brown has been posted to the debit of her personal account.
(c) £4,840 receivable from John Brass, regarded as irrecoverable, has not been written off.
(d) £7,950 due from Sam Black, set off by contra, is not recorded in the Control account.
(e) A folio of the Sales Day Book has been added as £28,800 instead of £23,800.
(f) Any difference between the two sets of balances has arisen because of a credit balance in Mary Ratner’s account having been listed as a debit balance in the list of customers’ balances.
Required:
Set out a reconciliation of the two sets of balances.
Step by Step Answer:
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict