Question

Premiere Textile Limited                                              
SALES LEDGER CONTROL ACCOUNT RECONCILIATION                                              
                                              
Assume that you are working as a Receivale and Payable Control Maanger in Premiere Textile Limited for last 2 years. Now the financial year 2019 has just ended but the balances of the subsidiary legders of the Debtors are not equal to the total of Sales Ledger Control Account. The total of the Subsidiary ledgers is £ 108,124 whereas the total of Sales Ledger Control Account is £ 109,678                                              
                                              
                                              
                                              
On investigation, the following errors were found:                                              
                                              
1)   A Debtor's balance of £ 2842 had been included in total credit sales but had not been posted to the customer's account.                                          
                                              
2)   Discounts allowed amounting to £ 348 were not entered in the customer's accounts.                                          
                                              
3)   Return Inward Journal was overcast by £ 696                                          
                                              
4)   Return of £ 986 from a customer had not been recorded in the books.                                          
                                              
5)    A purchase ledger balance of £ 1508 has been set off against sales ledger balance but nothing had been recorded in the Sales Ledegr Control Account and in the Customer Account.                                          
                                              
                                              
6)   Sales day book had been overcast by £ 2668                                          
                                              
7)   Goods returned worth £ 1624 were recorded as £ 1264 in the customers account.                                          
                                              
8)   A debt of £ 638 had proved bad but no entry had been passed in the books.                                          
                                              
9)   Discount allowed amounting to £ 464 had been posted to the debit side of the customers account.                                          
                                              
You are required to:                                              
a)    Show the above adjustments in the sales ledger control account                                          
b)   Prepare a statement showing the reconciliation of the total of the subsidiary ledger balances with the amended balance of sales ledger control account.                                          
                                              

Answer 1

Answer
Day 013-352) Week 2 Given - am Books of -- For FY 2019 Balance as per subsidiary Ledger = 108124 Dr. Balance as per sales ledger 4c = 1096784. We have to Reconcile errors such that Balances from both accounts is to be matched or tallied Ansures ad Adjustment in sales ledger control account. sales ledger Alc has credit Balance lets start with making journal entries in sales Ale a 1.) No - post of Debtors Bal 0/62842 » No entry will be passed in sales ledger as Delitors Ale is only effected. Eintry O is 2, 4, 7, 8 and in belles ledger purely related a will have no effect account as it to Debitors Alc Notes February

Day 1014-351) Week 3 ing Point 3) Return mward overcast t 696. To correct the error follow adjustment to be done! Return mward Alc - Dr 696 To sales ledger a 696 Points) purchase ledger bal set off t 1508. set off entry sales - ledger Ale To Customer - Debtors - pe 1508 to Alc . 1508 Cotherway: The entr entry as it has you also can nullify effect skip the on both point 6) sales day book overcast by t 2668 sales All - Dr £2668 - To sales error All - 2668 Notes

Week 3 let's prepare sales ledger Control Indian Army Day Account based on above adjustement, sales ledger Control Account particulars Delit Delit I Il bouton particulars Credit 1 Purchase ledger sales Alc Bal 109678 - Bal eel off 1508 Return inward 2) Overcast error (2668 overcast 696 Balance 106198 110374 110374 credit Deltors Alc Renit particulars hebtors 1 Balance 1 108/24 1 Purchase ledger set off 12 Discount allowed 2 hoods Returned 3 Goods Returned error - 1264 41 Actual hoods Returned 3 Deltors Balance 28425) Bad delt 16) Rectified discount February Balance 1508 348 986 1624 638 928 Notes 106198 M T W T F S S M T W T F S S

Day (016-349) au point a - Discount of as 2 464 w posted on beleit side, pradically should on £464 Credit to beletter de to nullity / Rectify earlier entry instead of beleet & Credit is performed ie4 Earlier cuerong Discount kr 464 - - To pescount - 464 (This rechfies earlier outry) But customer has received a discount D Discount All br 464 - - To Customer - 464 Verong Discount 404 - O TO Ons Customer Hence. ledger tallied. for point 4). It has been that Return assumed mot of been h 986 has recorded bektors Alc in customers, - 464 ( Notes January