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Hi Mike,
Please could you help me with the following question:
Steven’s receivables ledger control account does not agree with the total of the receivables ledger. He discovered the following error’s:
1 A sales invoice has been entered into the sales day book 895 rather than 859.
2 The receivables column of the cash received day book has been undercast by 600
3) A contra of 400 against the purchase ledger has only been entered in the control accountWhich of the above errors would cause a difference between the receivables control account and the total of the receivables ledger?
A- 2 and 3 only
B- 1 and 3 only
C- 1 and 2 only
D- 1,2 and 3Thanks
I don’t know why you are asking Mike – he is not the tutor for Paper F3!
Please don’t simply type up questions and ask for the answer – you must have an answer in the same book in which you found the question (if you don’t then you should be using a different book!). Instead you should ask about what it is in the answer that you do not understand.
1 will not cause a difference because the wrong figure will have been entered in the receivables ledger, and also the total of the book will be wrong and so the wrong total will have been entered in the control account.
2 will cause a difference because the wrong total will have been entered in the control account.
3 will cause a difference because the entry has been made in the control account and not in the ledger.
I do suggest that you watch my free lectures on Books of Prime Entry, because all of the above is explained with examples.
(Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well)
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