At 30 November 2004, the balance on the accounts receivable control account in Emma's nominal ledger...

 

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At 30 November 2004, the balance on the accounts receivable control account in Emma's nominal ledger was RM39,982. The total of the list of balances on the accounts receivable personal accounts was RM39,614. Emma has discovered the following errors: i. an invoice for RM288 was entered correctly in the nominal ledger, but no entry was made in the personal account. ii. a payment of RM1,300 was accepted in full settlement of a balance RM1,309. No entry was made to record the discount. iii. a credit note issued to a credit customer for RM120 was incorrectly treated as an invoice. iv. an addition error on a personal account meant that the balance was understated by RM27. v. a customer lodged a payment of RM325 directly to Emma's bank account. The balance on the personal account was adjusted, but no entry was made in the nominal ledger. vi. an invoice for RM644 was posted as RM466 in the nominal ledger. vii. a credit balance of RM47 on a customer's account was treated as a debit balance. Required: a. Show the accounts receivable control account, including the necessary correcting entries and the corrected balance. (6 marks) b. Prepare a reconciliation of the list of balances to the corrected balance on the accounts receivable control account. (7 marks) c. State the correct accounts receivable's balance for inclusion in the final accounts and indicate where it should be reported on the statement of financial position. (2 marks) At 30 November 2004, the balance on the accounts receivable control account in Emma's nominal ledger was RM39,982. The total of the list of balances on the accounts receivable personal accounts was RM39,614. Emma has discovered the following errors: i. an invoice for RM288 was entered correctly in the nominal ledger, but no entry was made in the personal account. ii. a payment of RM1,300 was accepted in full settlement of a balance RM1,309. No entry was made to record the discount. iii. a credit note issued to a credit customer for RM120 was incorrectly treated as an invoice. iv. an addition error on a personal account meant that the balance was understated by RM27. v. a customer lodged a payment of RM325 directly to Emma's bank account. The balance on the personal account was adjusted, but no entry was made in the nominal ledger. vi. an invoice for RM644 was posted as RM466 in the nominal ledger. vii. a credit balance of RM47 on a customer's account was treated as a debit balance. Required: a. Show the accounts receivable control account, including the necessary correcting entries and the corrected balance. (6 marks) b. Prepare a reconciliation of the list of balances to the corrected balance on the accounts receivable control account. (7 marks) c. State the correct accounts receivable's balance for inclusion in the final accounts and indicate where it should be reported on the statement of financial position. (2 marks)

Answer rating: 100% (QA)

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