[laavaraj]

Ryan is a business selling umbrellas branded with corporate logos. The umbrellas are sold in bulk lots on credit. The accountant is carrying out a reconciliation of the receivables ledger control account balance, which is $172,120 to the total of the balances on the individual accounts in the receivables ledger, which is $176,134.
The following has been found:
(1) A contra item of $1,500 has not been entered in the receivables ledger control account.
(2) A cheque for $555 from a customer has been dishonoured. The correct double entry has been posted but the individual accounts have not been updated.
(3) A payment of $322 from a customer has incorrectly been entered in the accounts receivable ledger as $233.
(4) Discounts given totaling $120 have not been entered in the control account.
(5) Cash received of $800 has been debited to the individual customer’s account in the accounts receivable ledger.
(6) Total credit sales of $4,500 to a large accountancy firm, Close & Counter have been posted correctly to the ledger account but not recorded in the control account.
Correct the receivables ledger control account and reconcile this to the sum total of the individual accounts in the accounts receivable ledger.

[Author]

Posts