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Sir, I’m unable to understand the following question. I need your help to understand it’s logic, please.
The balance on Amy’s receivables ledger control account in the general ledger is $100 more than the
total listing of the balances on the personal accounts.
Which of the following treatments of an invoice for $100 could have caused this difference?A The invoice was entered on the credit side of the personal account
B The invoice was not entered in the personal account
C The invoice was entered twice in the personal accountThe balance on the control account should be equal to the total of the balances on the personal accounts.
A) cannot be correct because entered 100 on the wrong side of the personal account will make the balance on the personal account 200 less than it should be.
B) Not entering 100 in the personal account will make the total of the personal accounts 100 less than it should be, and therefore this is the correct answer.
C) Entering 100 twice in the personal account would make the total of the personal accounts 100 more than it should be and so this is not the correct answer (because the question says that the total of the personal account balances is less than the balance on the control account).
Have you watched my free lectures on Books of Prime Entry?
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