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Shirley has prepared the following reconciliation of the balance on the receivables ledger control account in her general ledger to the total of the list of balances on customers’ personal accounts:
Balance on general control account = 35,776
Less: balance omitted from list of balances = 452
Sub-total = 35,324
Add sales day book undercast = 900
Total of list of balances = 36,224Need your explanation for it’s understanding please. Especially about the treatment of “balance omitted from the list of balances” why we are not considering it in our calculation please ?
The control account balance is the result of totals taken from the sales day book and cash book (receipts from credit customers).
The total of the list of balances is simply the balances on each separate receivables account added up.
Control account starts at 35,776. The balance omitted from the list of balances has nothing to to with that. However, the total on a SDB page has been undercast by 900. The control account balance should therefore be 900 more, ie 36,676.
The list of balances starts at 36,224, but 452 has been omitted. The correct total is therefore 36,224 + 452 = 36,676.
The reconciliation is complete.
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