Accounting 9706 · AS & A Level · Reconciliation and verification
Reconciliation and verification — practice question
At $30$ November $2018$, Lawrence gave the details below. The balances in the purchases ledger control account and the sales ledger control account did not match the respective listings of balances extracted from the purchases ledger and sales ledger. The following items were found.
(a(i))[4]
Prepare the corrected purchases ledger control account as at $30$ November $2018$.
(a(ii))[5]
Prepare the corrected sales ledger control account as at $30$ November $2018$.
(b)[2]
Explain what the term ‘error of commission’ means.
(c(i))[2]
Explain the effect on a business of not updating customers’ accounts in the sales ledger.
(c(ii))[2]
Explain the effect on a business of not updating suppliers’ accounts in the purchases ledger.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme.