accounting (show all working and explain each treatment - 76273

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lion_king013

lion_king013

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Price: $5
  • From: Business, Accounting
  • Due on: Fri 06 Feb, 2015 (09:15pm)
  • Asked on: Thu 05 Feb, 2015
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Description

4 On 30 September 2002 a schedule of debtors extracted from Stone’s sales ledger totalled $18 100 but the balance on the Sales Ledger Control account was $19 900. The following errors were found later.

1. The sales day book had been undercast by $200.

2. A debtor’s account had been wrongly balanced as $500 instead of $540.

3. Goods $70 returned by a debtor had been debited to his account.

4. A discount allowed of $60 had been recorded in the cash book but not entered in the customer’s account.

5. A written off bad debt of $260 had not been entered in the control account.

6. Balances totalling $340 in the purchases ledger had been set off against balances in the sales ledger but no entries had been made in the control accounts.

7. A debtor’s balance of $1600 had not been listed in the schedule of debtors.

8. $40 interest charged on a debtor’s outstanding account had been recorded in the sales ledger but not in the control account.

(a) Starting with the original total, make the necessary adjustments to the schedule of debtors.

(b) Starting with the original balance, prepare a revised Sales Ledger Control account.

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