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Hello,
This is probably a very easy question so please forgive my ignorance!
“A business recievables ledger control account did not agree with the total of the balances on the recievables ledger. An investigtion revealed that the sales day book had been overcast by $10” What effect will this have on the descrepency?
I’m not sure what overcast means in this context – does this mean that there was a sale for $10 recorded that never occured? Or does it mean that it was wrongly predicted that sales would be $10 more on this day?
Is the answer as simple as the account should be credited $10?
Thanks for the help
Overcast simply means over-added.
It is the total of the sales day book that is entered in the control account and so the control account will be wrong. It is the individual amounts that are entered in the receivables ledger, and so this will be OK.
I do suggest that you watch the free lectures on Books of prime entry, and on control accounts. (Our lectures are a complete course for Paper F3 – they cover everything you need to be able to pass the exam well)
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