Day: April 15, 2024

Alex plc has a reporting period for the year ended 31 December 2021.

At that date the balance on the receivables control account was £65,000, but the total of the individual accounts in the receivables ledger came to £63,620.

Upon investigation the following facts were discovered:

1  The sales day book total for week 49 had been overcast by £300.

2  A credit balance of £210 on Cabbage’s account in the receivables ledger had been incorrectly treated asa debit entry, when balancing off his account.

3  A payables ledger contra of £1,500 has been entered in Sprout’s account in the receivables ledger but no other entry had been made.

The correct balance on both the receivables ledger listing and the receivables control account is?

Select ONE answer:

1. £62,900
2. £63,200
3. £63,400
4. £66,800

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Note the correct balance on the receivables ledger listing is 63,620 – (210 x 2) = £63,200 ==> RECEIVABLES CONTROL ACCOUNT = Dr B/D £65,000 Cr SDB Overcast £300 + Contra £1,500 = C/D £63,200
3. Not correct
4. Not correct

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