Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Payable control account
- This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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- July 9, 2015 at 8:52 pm #260450
Hey John,
Could you please explain me why few wouldn’t be corrected and other would be. Thanks following scenario relates to questions 13.15 to 13.17.
P & Co maintain a receivables ledger control account within the nominal ledger. At 30 November 20X0, the total of the list of individual balances extracted from the receivables ledger was $15,800, which did not agree with the balance on the receivables ledger control account. An examination of the books revealed the following information, which can be used to reconcile the receivables ledger and the receivables ledger control account.
1 The credit balance of $420 in Ahmed’s payables ledger account had been set off against his account in the receivables ledger, but no entries had been made in the receivables and payables ledger control accounts.
2 The personal account of Mahmood was undercast by $90.
3 Yasmin’s balance of (debit) $780 had been omitted from the list of balances.
4 Thomas’ personal account balance of $240 had been removed from the receivables ledger as a bad debt, but no entry had been made in the receivables ledger control account.
5 The January total of $8,900 in the sales daybook had been posted as $9,800.
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6 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.
7 The total on the credit side of Edward’s personal account had been overcast by $125.
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13.15 Which of these items need to be corrected by journal entries in the nominal ledger?
A 1, 3, 4 and 5 only B 1, 4 and 5 only
C 1, 2, 5 and 6 only
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D 2, 3, 6 and 7 only (2 marks)
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13.16 What is the revised total of the balances in the receivables ledger after the errors have been corrected?
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A $15,105 B $16,195 C $16,495 D $16,915July 10, 2015 at 7:09 am #260470You need to watch the lecture on Books of Prime Entry.
Only the control accounts are in the nominal/general ledger. Accounts in the payables and receivables ledgers are not part of the double entry.
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