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    Tutorial 9 & 10 Control Accounts Corrected

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    Gaba Riele
    tut

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    Tutorial 9 & 10 Control Accounts Corrected

    Uploaded by

    Gaba Riele
    7 views4 pages
    tut

    Original Title

    Tutorial 9 & 10 control accounts corrected

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    tut

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views4 pages

    Tutorial 9 & 10 Control Accounts Corrected

    Uploaded by

    Gaba Riele
    tut

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Tutorial 5 control accounts

    QUESTION 1

    The following Sales Ledger Control Account was prepared by an inexperienced

    accounts assistant of Batswana Ltd Co. for the month of March 2016:

    Sales Ledger Control Account

    P P

    Balance b/d 43,000 Cash received 206,000

    redit sales 640,000 Bad debts written off 9,000

    Discounts allowed 5,000 Sales returns 1,600

    Interest charged 6,000

    Allowances to customers 5,920 Balance c/d 471,320

    693,920 693,920

    SALES LEDGER CONTROL ACCOUNT

    DATE DETAILS AMOUNT(P) DATE DETAILS AMOUNT (P)

    31 BAL B/D 471320 Discount 10 000

    allowed(5000*2

    Interest 12 000 Allowances to 11 840

    charged customers

    ( 6000*2) ( 5920*2)

    Over cast of 400 Contra entry 1 600

    discount

    allowed
    Omitted 11 000 bank 4 000

    invoice

    Overcast of 3 500

    salesday book

    Bal c/d 463 780

    494 720 494 720

    1 April bal b/d 463 780

    RECON STATEMENT FOR RECIEVABLES

    CONTROL ACCOUNT AS AT 31 MARCH

    P P

    LIST OF SALES LEDGERS BALANCES 455 082

    Add: omitted invoice 1 200

    Correction of error (500*2) 1 000

    Undercast of customers account 100

    Omission of debit balance 1 318

    Omission of invoice 11 000

    14 618

    469 700

    Less: allowances to customers 300

    Omission of credit transfer 4 000

    Error of in posting a cheque 1 620

    5920

    Balance as per sales ledger control account 463 780


    The list of balances extracted from the Sales Ledger at 31 March 2016 totalled P455,

    082.

    In addition to the errors in the above Sales Ledger Control Account, the following

    errors and omissions were discovered:

    i. An invoice for P1, 200 was entered in the Sales Daybook but had not been

    posted to the customer’s account in the Sales Ledger.

    ii. The discount allowed column in the business’s cash book was over-added

    by P400.

    iii. The allowances to customer’s figure of P5, 920, appearing in the above

    Control Account, includes P300 which has yet to be posted to the personal

    account of the customer.

    iv. The list of debtors’ balances includes P500 which was incorrectly listed as a

    credit balance.

    v. The debit side of one customer’s account has been under-added by P100.

    vi. A debit balance of P1, 318 has been omitted from the list of debtors’

    balances.

    vii. A purchase ledger contra of P1, 600 had been recorded in the account of the

    customer but not in the Control Account.

    viii. The business bank statement showed a credit transfer of P4, 000 from a

    customer which has been omitted from the books.

    ix. The Sales Daybook was over-added by P3, 500.


    x. A cheque for P5, 800, received from a customer, has been incorrectly

    posted to the customer’s account as P4, 180.

    xi. A sales invoice for P11, 000 was omitted from the Sales Daybook.

    REQUIRED:

    a) Commencing with the balance of P471, 320, prepare a statement showing the

    revised balance on the Sales Ledger Control Account following correction of the

    various errors and omissions. (10 marks)

    b) Commencing with the balance of P455, 082, prepare a statement showing the

    revised total of the Sales Ledger balances following correction of the various errors

    and omissions. (10

    marks)

    QUESTION 2

    Suggest reasons why there might be a difference between the balance on the receivables
    ledger control account and the total the list of accounts receivable ledger balances.

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