In this task you need explain the process of reconciliation of sales ledger control account and...

  

  

  

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In this task you need explain the process of reconciliation of sales ledger control account and match it with sales ledger book balance. You need to investigate the discrepancies, identify them and amend them. Your line manager has provided you with following information: • The net total of balances in the trial balance, which was extracted from the sales ledger as on 30 November, amounted to £50,550 which did not agree with the balance on the sales ledger control account, £50,000. On checking, the following errors were discovered: 1. The list of account receivables balances in the sales ledger had been overstated by £500. 2. The sales day book had been understated by £510 in the sales ledger control account. 3. A refund to a customer had been understated by £320. In the sales ledger control account. 4. The sales discount had been omitted by £300. From both ledgers. 5. A sales return of f350 was completely omitted from both ledgers. 6. A balance owing by customer had been written off and debited to bad debts expenses by £140 and didn't record in the sales ledger control account. Instructions: in this task you have to use the given information in order to prepare the following documents and to explain the process taken to reconcile these accounts. 1. The journal entries to clear the suspense accounts. 2. A statement of reconciliation for sales ledger book. 3. A statement of reconciliation for sales ledger control account. Provide two different accounts of control accounts and demonstrate the use and the importance of reconciling these accounts. Use an appropriate format to produce accurate reconciliation statements. LO4: a) Jounal entry of suspense account Particular Dr. Cr. Date 3. 5 2) b) A statement of reconciliation of sales ledger unadjusted sales ledger balance Less: Overstate of the list Sales returns omitted Sales discount omitted corrected sales ledger balance A statement of reconciliation of Sales Ledger Control Account Balance b/d Sales returns Sales overstated Bad Debts written off Sales discount Refunds to customers Balance c/d 2) Provide two different accounts of control accounts and demonstrate the use and the importance of reconciling these accounts. In this task you need explain the process of reconciliation of sales ledger control account and match it with sales ledger book balance. You need to investigate the discrepancies, identify them and amend them. Your line manager has provided you with following information: • The net total of balances in the trial balance, which was extracted from the sales ledger as on 30 November, amounted to £50,550 which did not agree with the balance on the sales ledger control account, £50,000. On checking, the following errors were discovered: 1. The list of account receivables balances in the sales ledger had been overstated by £500. 2. The sales day book had been understated by £510 in the sales ledger control account. 3. A refund to a customer had been understated by £320. In the sales ledger control account. 4. The sales discount had been omitted by £300. From both ledgers. 5. A sales return of f350 was completely omitted from both ledgers. 6. A balance owing by customer had been written off and debited to bad debts expenses by £140 and didn't record in the sales ledger control account. Instructions: in this task you have to use the given information in order to prepare the following documents and to explain the process taken to reconcile these accounts. 1. The journal entries to clear the suspense accounts. 2. A statement of reconciliation for sales ledger book. 3. A statement of reconciliation for sales ledger control account. Provide two different accounts of control accounts and demonstrate the use and the importance of reconciling these accounts. Use an appropriate format to produce accurate reconciliation statements. LO4: a) Jounal entry of suspense account Particular Dr. Cr. Date 3. 5 2) b) A statement of reconciliation of sales ledger unadjusted sales ledger balance Less: Overstate of the list Sales returns omitted Sales discount omitted corrected sales ledger balance A statement of reconciliation of Sales Ledger Control Account Balance b/d Sales returns Sales overstated Bad Debts written off Sales discount Refunds to customers Balance c/d 2) Provide two different accounts of control accounts and demonstrate the use and the importance of reconciling these accounts.

Answer rating: 100% (QA)

Journal Entries 1 Account Receivables are Overstated by 500 Sales Ledger Ac Dr 500 To Suspense Ac Cr ... View the full answer