Forums › FIA Forums › FA1 Recording Financial Transactions Forums › Question on Chapter 4 of FA1
- This topic has 2 replies, 3 voices, and was last updated 8 years ago by etm97.
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- February 27, 2016 at 6:05 am #302267
The receivables column in debit side of a cash book has been added up by $100 too much.
When the list of receivables balances is being reconciled with the receivables ledger control account, what correction(s) will be needed?
A No correction is needed
B The receivables control account balance needs to be increased by $100
C The receivables control account balance needs to be decreased by $100
D The sum of the list of balances needs to be increased by $100This was the explanation given: $100 too much will have been credited to the
receivables control account from the cash book column total.Why is the answer B? I am confused.
Appreciate if anyone can help (:
March 9, 2016 at 8:27 am #304650The answer is B.
So, you add up the Dr side of the CB by $100 too much. This total is used to credit the receivables control account – so it is credited $100 too much. The adjustment needed is therefore to reduce it by $100.
July 20, 2016 at 8:44 pm #328101B is the correct answer because the receivables have paid what they owe to the business with cash but it seemed like the account had overstate the amount in the cash a/c.which is wrong,so that overstated amount should be returned to the receivable by debit DAT amount in his/her a/c
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