Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

At the close of the financial period, a trader’s sales ledger control account recorded a debit balance of $28500. This was not in line with the combined balance of the separate trade receivables accounts in the sales ledger. The errors below were then found. 1 A dishonoured cheque for $300 received from a credit customer had been posted to the credit side of the sales ledger control account. 2 Contras amounting to $500, which had been posted correctly in the sales ledger, had been left out of the sales ledger control account. 3 Discounts allowed of $700 had not been recorded in the sales ledger control account. Which amount ought to be shown for trade receivables in the financial statements?

  • A$27600
  • B$27900
  • C$28900
  • D$29300

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