Question

You are a newly appointed Accounts Receivable Manager of FTL Limited which uses a sales day book to record its sales. A sales ledger control account is maintained in the general ledger whereas a debtors subsidiary ledger is maintained sepaartely. On December 31, 2017 the total of the list of debtors is amounting to £ 301,000 as per debotors subsidiary ledger did not agree with the balance in the Sales Ledgr Control Account whoch showed a balance of £ 345,000. On scrunity, the following errors were discovered:                                                          
                                                          
                                                          
                                                          
1)   The credit side of the subsidiary account of Mr. Ashish has been undercasted by £ 7,000.                                                      
                                                          
2)   Invoice number 23612 sent to Mr. Zaman amounting to £ 11,000 has been recorded twice in the sales day book but has not been recorded at all in the subsidiary ledger.                                                      
                                                          
                                                          
3)   A debit balance £ 9,300 and the credit balances amounting to £ 4,600 had been omitted from the list of balances.                                                      
                                                          
4)    An account of £ 1,800 owed by Mr. Shahid had been written off as irrecoverable on March 31, 2017 and debited to bad debts, but no entry had been made in the Control Account                                                      
                                                          
                                                          
5)   A debit balance of £ 2,000 in the subsidiary Ledger had been listed as a credit balance.                                                      
                                                          
6)   No entry had been made in the control account in respect of a transfer of £ 4,100 standing to the credit of Mr Gill's Account in the Purchases Ledger to his account in the Sales Ledger                                                      
                                                          
                                                          
7)   The total of the Sales Returns Book had been undercast by £ 12,000                                                      
                                                          
8)    The list of balances had been overcast by £ 1,000                                                      
                                                          
9)   Brit Limited account had been credited with £ 3,400 for goods returned by him but no other entry had been made in the books.                                                      
                                                          
Required:                                                          
                                                          
Prepare a statement reconcilng the balance as per the list with the sales ledger control account clearly identifying the amount which shall be reported in the balance sheet as "Trade Debts"                                                          
                                                          

Answer 1

* According to data:- Page-1 S.No Balance as per Debtors subsidiary ledger 301000 1- The credit side of the subsidiary account of Mr. -7000 Ashish has been undercasted by £7,000 Invoice number 23612 Sent to Mr. Zaman amounting to € 11,000 has been recorded twice in the sales 122000 day book but has not been at all in the subsidiary ledger 3. A debit balance £ 9,300 and the credit balances amounting to €.4,600 had been omitted from the I list of balances 14. An account of £1,800 owed by Mr. shahid had been listed as a irrecoverable on March 31, 2017 and 1800 debited to bad debts, but no entry had been made in the control account. 4700 (9300- 4600)

Page 2 5. A debit balance of £2,000 in the subsidiary ledger om had been listed as a credit balance 6. No entry had been made in the control account in respect of £ 4.100 standing to the 4100 credit of Mo Gill's account in the purchases ledger to his account in the sales ledger. 7. The total of the sales returns book had been | 12000 | undercast by £ 12,000 8. The list of balances had been overcast by £ 1,000 -1000 19.1 Boit limited account had been credited with £ 3,400 eura for goods returned by him but no other entry had been made in the books Balance as per sales ledger control account 345,000