1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
The following information has been extracted from the accounts of Harvey Rabbit for the year ended 31 March 2010. $ Sales ledger balance at 1 April 2009 29 040 Credit sales 499 892 Cash sales 14 634 Credit sales returns 9 878 Receipts from debtors, banked 462 680 Discount allowed on credit sales 21 404 Bad debts written off 9 510 Debtors’ cheques dishonoured Contra entries 1 153 REQUIRED Prepare Harvey Rabbit’s sales ledger control account for the year ended 31 March 2010. The total of Harvey Rabbit’s sales ledger balances at 31 March 2010 was $26 845, which did not agree with the closing balance of his sales ledger control account. On checking his accounts he discovered the following errors. A credit note for $420 which had been sent to a debtor had been entered in the sales journal (day book) and posted as a sale to both accounts. A debit entry in the sales ledger for $698 had been set off as a contra entry in the purchases ledger, but no entry had been made in the control accounts. The discount allowed account had been overstated by $310. A sales invoice for $998 had been completely omitted from the accounts. A debit balance of $2102 had been omitted from the list of debtors. A debtor who owed $896 had been declared bankrupt during March 2010. The debt had been written off in the control account, but no entry had been made in the debtor’s account. A receipt for $630 had been debited to the bank account but omitted from the debtor’s account. An entry for $816 in the sales journal (day book) had not been posted to the debtor’s account. A sales ledger account had been understated by $200. 10 A page of the sales journal (day book) with entries totalling $3856 had been omitted from total sales. The amounts had, however, been posted to the debtors’ accounts. REQUIRED Beginning with the closing balance which you have calculated in , prepare a statement showing the amended balance on the control account. Amendments to sales ledger control account Beginning with Harvey Rabbit’s sales ledger balance of $26 845, prepare a statement amending the total of the sales ledger balance to agree with the new control account balance. State three advantages of keeping control accounts.
9706_s10_qp_23
THEORY
2010
Paper 2, Variant 3
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Questions Discovered
385