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:
- Contra settlement omitted from the memorandum ledgers
- Invoice omitted from the sales day book
- Balance omitted from the receivables ledger listing
- 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
- Not correct
- Not correct
- 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
- Not correct
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