Closing Account Receivable after correcting the errors ( video below)
An inexperienced bookkeeper has drawn up the following receivables ledger control account:
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 45,000 | Credit sales | 47500 |
| Cash from credit customers | 57,000 | Irrecoverable debts written off | 375 |
| Sales returns | 2,000 | Contras against payables | 600 |
| Cash refunds to credit customers | 825 | Closing balance (balancing figure) | 57,400 |
| Discount allowed | 1,050 | – | |
| 105,875 | 105,875 | ||
What should the closing balance be after correcting the errors made in preparing the account?
Answer
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 45,000 | Cash from credit customers | 57,000 |
| Credit sales | 47,500 | Irrecoverable debts written off | 375 |
| Cash refunds | 825 | Sales returns | 2,000 |
| Discount allowed | 1,050 | ||
| Contras | 600 | ||
| – | Closing balance | 32,300 | |
| 93,325 | 93,325 | ||
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