Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Raheem is a trader who sells entirely on credit. He drew up a sales ledger control account for December 2015, but the total of customer balances failed to match the control account.
(a)[5]

Prepare the revised sales ledger control account for December 2015. Begin with the balance brought down of $20 470$.

(b)[5]

Prepare a statement that reconciles the original total of sales ledger balances of $18 740$ with the closing balance shown on the amended sales ledger control account.

(c)[3]

State three advantages to a business of keeping a sales ledger control account.

(d)[2]

State two types of errors that will not be identified by preparing a sales ledger control account.

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