The following receivables control account has been prepared For Alex Ltd:
RECEIVABLES CONTROL ACCOOUNT
DR Balance b/d 1 March 2024 £180,000
DR Cash from credit customers £228,000
DR Cash refunds to credit customers £3,300
DR Discounts allowed to credit customers £4,200
DR Totals £415,500
CR Credit sales £182,000
CR Contras against payables £2,400
CR Irrecoverable debts written off £1,500
CR Balance c/d 31 March 2024 £229,600
CR Totals £415,500
What should the closing balance be after correcting the errors made in preparing the account?
Select ONE answer:
- £130,600
- £129,200
- £142,400
- £214,600
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
- Notcorrect
- Correct –> DR £180,000 + £182.000 + £3,300 = £365,300 less CR £228,000 – £1,500 – £4,200 – £2,400 = Balance c/d 31/3/2024 £129,200
- Not correct
- Not correct
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