Control Account Reconciliation
I. On 31 December 2014 Smithson listed the balances contained in his sales ledger. These
balances totaled Rs.16980 but on the same date the balance of the sales ledger control
account was Rs.18180.
After investigation the following errors were found.
a. A debtor account was charged with Rs.70 interest but it was not recorded in the
control account.
b. A debtor balance of Rs.740 had been counted in total credit sales but had not been
posted to the customer’s account.
c. Donald was both a customer and a supplier. His purchases ledger balance of Rs.440
has been set-off against his sales ledger balance but this has not been recorded in the
control account.
d. A debt of Rs.390 had proved bad but no entry had been passed in the books.
e. Sales day book had been over cast by Rs.550.
f. Return inward journal was over cast by Rs.110.
g. Discount allowed of Rs.170 had been entered in the cash book but it is not posted to
the customer’s account.
h. Discount allowed of Rs.80 to Berry had not been recorded in the books.
i. Rhodes returned goods worth Rs.310 but this sum was recorded as Rs.130 in his
account.
REQUIRED
1. Write up the sale ledger control account.
2. Prepare a statement showing the reconciliation of the original total of the sales ledger
balances with the amended sales ledger control account balance.
II. At 30 September the balance on the trade receivables ledger control a/c, which is maintained
inthe general ledger, was Rs7,655. The total of the list of balances extracted amounted to
Rs7,580.
The following errors have been discovered.
(1) An invoice for Rs560 has been correctly recorded in the sales day book – but
recorded in the individual customer’s a/c as Rs650.
(2) A contra of Rs190 recorded in the individual accounts has been omitted from the
control a/c.
(3) Discounts in the individual accounts amounting to Rs135 have not been recorded in
the control a/c.
(4) The sales day book was undercast by Rs100.
(5) A credit balance of Rs30 was extracted as a debit balance.
Required:
Reconcile the control account balance to the total of the list of balances.
