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Please explain me sir how the answer comes 'A'.

MSManjot Singh5y ago
A business had a receivables’ ledger control account did not agree with the total of the balances on the receivables’ ledger. An investigation revealed that the sales day book had been overcast by $10.   What effect will this have on the receivables’ ledger control account? A The control account should be credited with $10 B The control account should be debited with $10 C The control account should be credited with $20 D The control account should be debited with $20
John MoffatJohn MoffatTutor5y ago#1
The total from the day book will have been entered on the debit side of the control account. However the total had been overcast and so was more that it really should have been. Therefore the total entered in the control account needs to be reduced by $10 and we do this by crediting the control account. Have you watched my free lectures on Books of Prime Entry? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Vved3y ago#2
sir but if the sales day book has been overcast by $10 it means there is an extra DR of $10 therefore to correct it we will need to give an extra credit of $20 to solve it right ? one to correct the extra DR and one to reduce it ?
John MoffatJohn MoffatTutor3y ago#3
No. Suppose the correct total is $100 but they had overcast and so arrived at a total of $110. They will have debited receivables with 110, but they should only have debited with 100. So to correct it they just need to credit with 10.