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question 13.6 in f3 kit:
At 30 November 20X0, the total of the list of individual balances extracted from the receivables ledger was $15,800, it is also discovered that:
The personal account of Mahmood was undercast by $90.
Yasmin’s balance of (debit) $780 had been omitted from the list of balances.
A credit note to Charles for $1,000, plus sales tax of $300, had been posted to the receivables ledger control account as $1,300 and to Charles’ personal account as $1,000.
The total on the credit side of Edward’s personal account had been overcast by $125
What is the revised total of the balances in the receivables ledger after the errors have been corrected?
here is the answer:
BALANCES EXTRACTED FROM THE RECEIVABLES LEDGER
Total before corrections for errors 15,800
Mahmood 90
Yasmin 780
Charles (300)
Edward 125corrected Balance: 16,495
please explain to me why 300 is deduced in this question, thanks.
The personal account in the receivables ledger should show the total owing from Charles.
Since he has received a credit note for $1300 in total, then $1300 should have been entered on his account to reduce the amount owing.
Only $1,000 has been entered, and so to correct it the balance needs reducing by an additional $300.Hope that helps 🙂
Thank you so much, now i understand. i thought credit note is debit on receivable in this question, so poor.
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