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Control account reconciliations

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Control account reconciliations

  • This topic has 4 replies, 2 voices, and was last updated 3 months ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
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  • April 20, 2022 at 1:53 pm #654070
    AbrahamChinYuan
    • Topics: 15
    • Replies: 15
    • ☆

    Which of the following items would NOT lead to a difference between the total of the
    balances on the receivables’ ledger and the balance on the receivables’ ledger control
    account?

    A) An error in totalling the sales day book.
    B ) An error in totalling the receipts column of the cash book
    C) An overstatement of an entry in a customer’s account
    D) An entry posted to the wrong customer’s account

    Sir, The answer given is D. I accept this answer but i think B is also correct as cash book only concerns about cash transaction, thus would not lead a difference. What do you think?
    (I have watched your notes and lectures as well 🙂 )

    April 20, 2022 at 2:28 pm #654091
    AbrahamChinYuan
    • Topics: 15
    • Replies: 15
    • ☆

    Is it because by referring to the cash receipts book, we can know which customer we sold on credit had paid us back, so we can make the correct entries in the Nominal ledger (Cr. Receivables) ?

    April 20, 2022 at 3:12 pm #654103
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 50034
    • ☆☆☆☆☆

    B is not correct because it says there is an error in totalling the receipts column. This will be the total of all of the receipts – not just the receipts from receivables. It would only be correct if it said that the total of the receipts from receivables column had been totalled wrongly.

    April 21, 2022 at 2:14 am #654153
    AbrahamChinYuan
    • Topics: 15
    • Replies: 15
    • ☆

    Hi Sir,

    Why if the total of the receipts from receivables column had been totalled wrongly, it would NOT lead to a difference between the total of the balances on the receivables’ ledger and the balance on the receivables’ ledger control account?.

    April 21, 2022 at 7:52 am #654169
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 50034
    • ☆☆☆☆☆

    I think that you misunderstood my reply.

    If the total of the receipts in the receivables column of the cash book had been added up wrongly then it would lead to a difference.

    However B does not say that that total had been added up wrongly. It says that the total of all of the receipts had been added up wrongly (and there will be other receipts in that column, not just receipts from receivables).

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