BALANCE ON RECEIVABLES LEDGER CONTROL ACCOUNT (video below)
You are an employee of ABC Co and have been asked to help prepare the end of year statements for
the period ended 30 November 20X7 by agreeing the figure for the total receivables.
The following figures, relating to the financial year, have been obtained from the books of original entry.
| $ | |
| Purchases for the year | 90,487 |
| Sales | 118,047 |
| Returns inwards | 10,307 |
| Returns outwards | 4,245 |
| Irrecoverable debts written off | 479 |
| Discounts allowed | 668 |
| Discounts received | 466 |
| Cheques paid to suppliers | 85,698 |
| Cheques received from customers | 107,453 |
| Customer cheques dishonoured | 157 |
You discover that at the close of business on 30 November 20X6 the total of the receivables amounted
to $12,561. What is the balance on the receivables ledger control account at 30 November 20X7?
Answer
| RECEIVABLES LEDGER CONTROL | |||
| $ | $ | ||
| Balance b/d | 12,561 | Returns inwards | 10,307 |
| Sales | 118,047 | Irrecoverable debts written off | 479 |
| Cheques dishonoured | 157 | Discounts allowed | 668 |
| Cheques received | 107,453 | ||
| – | Balance c/d | 11,858 | |
| 130,765 | 130,765 | ||