A Accounting

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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