Day: May 23, 2024

A receivables ledger reconciliation was prepared by the bookkeeper of Alex & Co as at 31 March 2024 but one heading was illegible and has been called ‘other difference’.

RECEIVABLES CONTROL ACCOUNT
DR Balance B/D £25,320
DR Total £25,320

CR Sales day book overcast £1,000
CR Balance c/d £24,320
CR Total £25,320

Total per receivables ledger listing £23,890
Credit balance listed as debit £280
‘Other difference’ £710
Total £24,320

The ‘other difference’ is most likely to be?

Select ONE answer:

1. Contra settlement omitted from the memorandum ledgers
2. Invoice omitted from the sales day book
3. Balance omitted from the receivables ledger listing
4. Irrecoverable debt not written off in the memorandum ledger

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 3

1. Not correct
2. Not correct
3. Correct – balance omitted from the receivables ledger listing (C). Both would be affected by (B); in (A) and (D) the receivables ledger would be reduced
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.