1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
Raheem is a trader who makes all his sales on credit. He prepared the following sales ledger control account for the month of December 2015: $ $ Balance b/d 22 380 Sales returns journal 1 440 Sales journal 16 910 Bank 17 380 Balance c/d 20 470 39 290 39 290 Balance b/d 20 470 Raheem extracted a list of customer account balances from the sales ledger at 31 December 2015 totaling $18 740. This did not agree with the balance on the control account. The following errors were found: A sales invoice for $960 had been correctly recorded in the sales journal, but had not been posted to the customer’s ledger account. A customer’s irrecoverable debt of $250 had not been written off in any of Raheem’s books of account. A cheque received, $670, from a customer had been correctly recorded in the cash book. It had been entered on the debit side of the customer’s ledger account as $760. A cheque received, $200, from a customer had been returned unpaid by the customer’s bank. No entry in respect of the returned cheque had been made in any of Raheem’s books of account. Discounts allowed of $830 had not been entered in the control account. They had been entered in the customers’ ledger accounts. A contra to the purchases ledger of $1370 had been entered in the customer’s sales ledger account, but had not been included in the control account. REQUIRED Prepare the updated sales ledger control account for the month of December 2015. Start your answer with the balance brought down of $20 470. Sales ledger control account Prepare a statement to reconcile the original total of sales ledger balances of $18 740 with the closing balance on the amended sales ledger control account. State three advantages to a business of maintaining a sales ledger control account. State two types of errors that will not be identified by producing a sales ledger control account.
9706_w16_qp_21
THEORY
2016
Paper 2, Variant 1
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A sales ledger control account had a debit balance of $38 600. The total of individual sales ledger debit balances was $36 500. The only errors found were as follows. An irrecoverable debt had been recorded in the ledger of Smith but not the control account. The sales journal was undercast by $1500. A contra of $1750 had been correctly recorded in the control account but only $1250 recorded in the ledgers. What was the value of the irrecoverable debt?
9706_w17_qp_12
MCQ
2017
Paper 1, Variant 2
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Trott provided the following information for the year ended 30 April 2017: $ Sales ledger control account balance 93 185 Sales ledger balances 78 370 The following errors were identified: The sales journal total had been overcast by $30 420. A dishonoured cheque for $9745 had not been entered in the customer’s account. Interest charged on an overdue amount, $720, had been completely omitted from the books of account. The sales returns journal had been overcast by $4560. Discount allowed of $1520 had been completely omitted from the books of account. Receipts from credit customers entered in the cash book had been overcast by $18 965. An irrecoverable debt of $1825 had been written off in the sales ledger control account but no entry had been made in the customer’s account. REQUIRED Complete the following tables to update the sales ledger control account balance and the sales ledger balances at 30 April 2017. Sales ledger control account Description Add ($) Less ($) Total ($) Opening balance 93 185 Sales ledger balances Description Add ($) Less ($) Total ($) Opening balance 78 370 State four advantages to a business of preparing a sales ledger control account.
9706_w17_qp_22
THEORY
2017
Paper 2, Variant 2
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A company prepared its purchases ledger control account which showed a balance of $15 960. The following items were then discovered. Discounts received of $450 had been entered into the purchases ledger control account as $540. A payment of $720 to a supplier had not been entered in his account. The purchases ledger debit balances carried down totalling $110 had been omitted from the control account. A contra of $170 had been entered in the purchases ledger but not in the purchases ledger control account. What was the correct total of the trade payables?
9706_w19_qp_11
MCQ
2019
Paper 1, Variant 1
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A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42 650. The following was discovered. An irrecoverable debt of $500 in the general journal has not been recorded in the sales ledger. The sales journal has been incorrectly added and must be reduced by $750. The sales ledger control account includes the discount received of $400. It should have been discount allowed, $600. Sales to J Brown, $640, have not been entered in his account. What was the correct total of the sales ledger balances?
9706_w19_qp_12
MCQ
2019
Paper 1, Variant 2
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Questions Discovered
385