right balance for receivables ledger control account ( video below)
The following receivables ledger control account prepared by a trainee accountant contains a number of errors:
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| 20X5 | 20X5 | ||
| 01 Jan Balance | 153,500 | 31 Dec Credit sales | 75,250 |
| 31 Jan Cash from credit customers | 77,750 | Discounts allowed | 850 |
| Contras against amounts due to suppliers in payables ledger | 2,163 | Irrecoverable debts written off | 8,000 |
| Interest charged on overdue accounts | 400 | ||
| – | Balance | 148,913 | |
| 233,413 | 233,413 | ||
What should the closing balance on the control account be after the errors in it have been corrected?
Answer
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 153,500 | Cash from customers | 77,750 |
| Credit sales | 75,250 | Discounts allowed | 850 |
| Interest charged on overdue accounts | 400 | Irrecoverable debts written off | 8,000 |
| Contras | 2,163 | ||
| – | Closing balance | 140,387 | |
| 229,150 | 229,150 | ||
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