Question

DEBTORS RECONCILITION                                                          
FTL LIMITED                                                          
                                                          
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"                                                          
                                                          

Need urgent answer

Answer 1

Answer :

	Balance as per Debtors subsidiary ledger	301000
1.	The credit side of the subsidiary account of Mr. Ashish has been undercasted by £ 7,000	- 7000
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 at all in the subsidiary ledger	22000
3	A debit balance £ 9,300 and the credit balances amounting to £ 4,600 had been omitted from the list of balances	4700	(9300 - 4600)
4	An account of £ 1,800 owed by Mr. Shahid had been listed as a irrecoverable on March 31.2017 and debited to bad debts, but no entry had been made in the control account	1800
5	A debit balance of £2,000 in the subsidiary ledger had been listed as a credit balance	4000
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	4100
7	The total of the sales returns book had been undercast by £ 12,000	12000
8	The list of balances had been overcast by £ 1,000	-1000
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	3400
	Balance as per sales ledger control account	345000