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1 A business’ receivables ledger control account did not agree with the total of the balances
on the receivables ledger. An investigation revealed that the sales day book had been
overcast by $10.
What effect will this have on the control account?
A The control account should be credited with $10
B The control account should be debited with $10
C The control account should be credited with $20
D The control account should be debited with $20Ans is A.Could u explain why?
If the sales day book has been over-added by $10, then the total posted to the control account will have been $10 too much.
The total will have been posted to the debit of the control account, and so to correct the error we need to credit the control account to remove the $10.
I do suggest that you watch my free lectures on Books of Prime Entry.
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