ICAEW AF · Chapter 6 · Question 8 of 9
A business's receivables control account shows a balance of £41,370, while the list of individual customer balances totals £40,170. Investigation reveals: 1. A credit note for £600 was recorded in the customer's individual account but was omitted from the sales returns day book. 2. An irrecoverable debt of £450 was written off in the control account but not in the customer's individual account. 3. A customer's debit balance of £1,050 was omitted from the list of balances. What is the agreed receivables balance after correcting these errors?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) £40,770
Explanation
Control account: the credit note was missed from the day book, so the control account must be reduced: £41,370 - £600 = £40,770. List of balances: deduct the irrecoverable debt not yet written off in the individual account and add the omitted balance: £40,170 - £450 + £1,050 = £40,770. Both now agree at £40,770.
More Control accounts MCQs
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