A company has a total balance on its sales ledger control account of $24350 but the...

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A company has a total balance on its sales ledger control account of $24350 but the total of its individual ledgers adds up to $25 270. An investigation revealed the following errors: a b 1 A payment of $3250 from a credit customer had been entered as $2350 in the relevant individual ledger. с d 2 A sales return of $230 had been entered on the wrong side of the relevant individual ledger. 3 A settlement discount of $85 had been entered twice in the relevant individual ledger. 4 A set-off of $620 had been omitted from the relevant individual ledger. 5 A sales return of $120 from C Newbury had been entered in the sales returns journal twice in error. 6 In the cash book, the column for receipts from trade receivables had been undercast by $1000. The draft profit figure was $12600 and the company sets its allowance for irrecoverable debts at 6% of trade receivables. Required Show the: The account of D Doherty totalling $95 had been written off in the individual ledger but not in the control account. 900 Corrected total balance for the individual ledgers. Corrected sales ledger control account balance. Corrected profit figure. Corrected trade receivables figure that would appear in the statement of financial position. A company has a total balance on its sales ledger control account of $24350 but the total of its individual ledgers adds up to $25 270. An investigation revealed the following errors: a b 1 A payment of $3250 from a credit customer had been entered as $2350 in the relevant individual ledger. с d 2 A sales return of $230 had been entered on the wrong side of the relevant individual ledger. 3 A settlement discount of $85 had been entered twice in the relevant individual ledger. 4 A set-off of $620 had been omitted from the relevant individual ledger. 5 A sales return of $120 from C Newbury had been entered in the sales returns journal twice in error. 6 In the cash book, the column for receipts from trade receivables had been undercast by $1000. The draft profit figure was $12600 and the company sets its allowance for irrecoverable debts at 6% of trade receivables. Required Show the: The account of D Doherty totalling $95 had been written off in the individual ledger but not in the control account. 900 Corrected total balance for the individual ledgers. Corrected sales ledger control account balance. Corrected profit figure. Corrected trade receivables figure that would appear in the statement of financial position.

Answer rating: 100% (QA)

To correct the errors and determine the corrected balances and figures lets go through each step a C... View the full answer