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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