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Hi Sir,
Could you pls help me with the following questions of BPP revision kit.
Question 13.16 What is the revised total of the balances in the receivables ledger after errors are corrected? and question 13.17
I dont understand which items to add and which to deduct.Sorry i am not replying to the question….i also have a question to ask…. control accounts…..why do you debit the refunds to customer in the receivables …when you are actually giving back money and getting the goods back meaning there are no expectations
One basic principal about control accounts is that ;Receivables ,debit whatever increases the receivables and credit whatever reduces the receivables ……..Payable;credit whatever increases increases the payable and debit whatever reduces them.
mandalp2:
I am waiting for the new edition of the revision kit to arrive from BPP – at the moment I only have the previous edition and the question numbers are all different.
However, have you watched my free lectures on Books of Prime Entry and on Control Accounts? Because these should resolve your problem.Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
319chi5y:
A refund is not the same as a return. A refund is simply repaying cash to the customer. Maybe they accidentally paid us too much and therefore we repay the overpayment.
When we receive cash we debit cash and credit receivables.
If we refund some of the cash then we credit cash and debit receivables.I do suggest that you watch the free lectures because I explain this in detail.
(And I do not understand the purpose of your second posting – is it supposed to be a question? 🙂 )
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