ACCA FA · Chapter 10 · Question 7 of 12
A receivables control account has a balance of $63,010, but the list of receivables ledger balances totals $61,490. The following errors were found: 1. A customer balance of $820 was omitted from the list. 2. A credit balance of $150 on a customer account was included in the list as a debit balance. 3. The sales day book was overcast by $1,000. What is the corrected receivables balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $62,010
Explanation
The sales day book overcast affects the control account only: $63,010 - $1,000 = $62,010. The list is corrected by adding the omitted balance and reversing the credit balance wrongly treated as a debit (2 x $150 = $300): $61,490 + $820 - $300 = $62,010. Both now agree at $62,010. Deducting only $150 gives $62,160.
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