ExpertMedium2 marksMultiple Choice
ACCA · Question 23 · Control Account Reconciliations
The receivables ledger control account shows a balance of $45,600. The total of the individual customer balances in the receivables ledger is $44,200. Upon investigation, it is discovered that a sales invoice for $1,400 was recorded in the sales day book as $2,800, but correctly posted to the customer's individual account. What is the correct receivables balance to be shown in the statement of financial position?
The receivables ledger control account shows a balance of $45,600. The total of the individual customer balances in the receivables ledger is $44,200. Upon investigation, it is discovered that a sales invoice for $1,400 was recorded in the sales day book as $2,800, but correctly posted to the customer's individual account. What is the correct receivables balance to be shown in the statement of financial position?
Answer options:
A.
$45,600
B.
$44,200
C.
$47,000
D.
$42,800
How to approach this question
Determine which record is wrong. The sales day book total feeds the control account, so the control account is wrong. The individual account was posted correctly, so the list of balances is correct.
Full Answer
B.$44,200✓ Correct
The sales day book was overstated by $1,400 ($2,800 instead of $1,400). The total of the sales day book is posted to the control account, so the control account is overstated by $1,400. The individual customer account was posted correctly, so the list of balances ($44,200) is correct. Adjusting the control account: $45,600 - $1,400 = $44,200. The correct balance for the financial statements is $44,200.
Common mistakes
Adjusting the list of balances instead of the control account, or adjusting both.
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