Closing balance for Receivables Ledger Control Account ( video below)
The following control account has been prepared by a trainee accountant:
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 77,150 | Cash received from credit customers | 36,800 |
| Credit sales | 38,550 | Discounts allowed to credit customers | 350 |
| Cash sales | 22,025 | Interest charged on overdue accounts | 600 |
| Contras against credit payables balances in ledger | 1,150 | Irrecoverable debts written off | 1,225 |
| Allowance for receivables | 700 | ||
| – | Closing balance | 99,200 | |
| 138,875 | 138,875 | ||
What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?
Answer
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 77,150 | Cash received | 36,800 |
| Credit sales | 38,550 | Discounts allowed | 350 |
| Interest charged | 600 | Contra | 1,150 |
| Irrecoverable debts | 1,225 | ||
| – | Closing balance | 76,775 | |
| 116,300 | 116,300 | ||
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