Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A credit customer handed cash to a sales ledger clerk as part payment of her debt. The clerk behaved dishonestly, kept the money for himself, and recorded the receipt in the customer’s sales ledger account, but did not make any entry in the cash book. How was the theft found out?

  • AA bank reconciliation statement was prepared.
  • BA sales ledger control account reconciliation statement was prepared.
  • CA statement of account was sent to and checked by the customer.
  • DA trial balance was extracted from the books of account.

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