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Tutorial 9 & 10 Control Accounts

The document discusses errors and omissions found in a sales ledger control account. It lists 11 issues found including incorrect postings, calculation errors, and missing transactions. The questions ask to prepare corrected statements for the control account balance and total receivables balance.

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Gaba Riele
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49 views

Tutorial 9 & 10 Control Accounts

The document discusses errors and omissions found in a sales ledger control account. It lists 11 issues found including incorrect postings, calculation errors, and missing transactions. The questions ask to prepare corrected statements for the control account balance and total receivables balance.

Uploaded by

Gaba Riele
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Tutorial 5 control accounts

QUESTION 1

The following Sales Ledger Control Account was prepared by an inexperienced

accounts assistant of Batswana Ltd Co. for the month of March 2016:

Sales Ledger Control Account

P P

Balance b/d 43,000 Cash received 206,000

Credit sales 640,000 Bad debts written off 9,000

Discounts allowed 5,000 Sales returns 1,600

Interest charged 6,000

Allowances to customers 5,920 Balance c/d 471,320

693,920 693,920

The list of balances extracted from the Sales Ledger at 31 March 2016 totalled P455,

082.

In addition to the errors in the above Sales Ledger Control Account, the following

errors and omissions were discovered:

i. An invoice for P1, 200 was entered in the Sales Daybook but had not been

posted to the customer’s account in the Sales Ledger.

ii. The discount allowed column in the business’s cash book was over-added

by P400.

iii. The allowances to customer’s figure of P5, 920, appearing in the above

Control Account, includes P300 which has yet to be posted to the personal

account of the customer.


iv. The list of debtors’ balances includes P500 which was incorrectly listed as a

credit balance.

v. The debit side of one customer’s account has been under-added by P100.

vi. A debit balance of P1, 318 has been omitted from the list of debtors’

balances.

vii. A purchase ledger contra of P1, 600 had been recorded in the account of the

customer but not in the Control Account.

viii. The business bank statement showed a credit transfer of P4, 000 from a

customer which has been omitted from the books.

ix. The Sales Daybook was over-added by P3, 500.

x. A cheque for P5, 800, received from a customer, has been incorrectly

posted to the customer’s account as P4, 180.

xi. A sales invoice for P11, 000 was omitted from the Sales Daybook.

REQUIRED:

a) Commencing with the balance of P471, 320, prepare a statement showing the

revised balance on the Sales Ledger Control Account following correction of the

various errors and omissions. (10 marks)

b) Commencing with the balance of P455, 082, prepare a statement showing the

revised total of the Sales Ledger balances following correction of the various errors

and omissions. (10

marks)
QUESTION 2

Suggest reasons why there might be a difference between the balance on the receivables
ledger control account and the total the list of accounts receivable ledger balances.

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