CIMA BA3 · Chapter 5 · Question 5 of 10
A receivables ledger control account shows a balance of $31,450, but the list of individual customer balances totals $30,980. Investigation reveals: (1) a customer's debit balance of $345 was left off the list; (2) a customer's credit balance of $120 was included in the list as a debit balance; (3) the sales day book was overcast by $365. What is the corrected receivables balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) $31,085
Explanation
List: $30,980 + omitted balance $345 - (2 x $120) to turn a debit of $120 into a credit of $120 = $31,085. Control account: $31,450 - overcast $365 = $31,085. Both now agree at $31,085.
More Receivables and payables control accounts MCQs
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- Q10The receivables ledger control account agrees with the total of the list of customer balances. Which of the following is true?
- Q1What is the main purpose of a receivables ledger control account?