On 31 October 1999 Duke listed the balances contained in his sales ledger. These balances totaled 15270 but…

Question

On 31 October 1999 Duke listed the balances contained in his sales ledger. These balances totaled 15270 but on the same date the balance of the sales ledger control account was 14790 After investigation the following errors were found.

ScanSolve AI Tutor · Accepted Answer

here's the sales ledger control account reconciliation and the statement amending the total of sales ledger balances.

Sales Ledger Control Account Reconciliation

This statement reconciles the unadjusted balance of the Sales Ledger Control Account with the corrected balance.

Start with the unadjusted Sales Ledger Control Account balance.
The initial balance of the Sales Ledger Control Account is given as \14790$.
Adjust the Sales Ledger Control Account for errors.
$\begin{array}{l r} \hline \textbf{Particulars} & \textbf{Amount (\$)} \\ \hline \text{Unadjusted Balance b/d} & 14790 \\ \text{Add:} & \\ \quad \text{b. Sales day book undercast} & 260 \\ \quad \text{e. Interest charged not recorded in control account} & 40 \\ \text{Less:} & \\ \quad \text{a. Returns from S-Lee not recorded} & (80) \\ \quad \text{h. Bad debt not recorded} & (210) \\ \quad \text{j. Return inward journal undercast} & (160) \\ \hline \textbf{Corrected Balance c/d} & \boxed{\textbf{14640}} \\ \hline \end{array}$
Statement Amending Total of Sales Ledger Balances

This statement reconciles the initial total of individual sales ledger balances with the corrected total.
Start with the initial total of sales ledger balances.
The initial total of sales ledger balances is given as \15270$.
Adjust the total of Sales Ledger Balances for errors affecting individual accounts.
$\begin{array}{l r} \hline \textbf{Particulars} & \textbf{Amount (\$)} \\ \hline \text{Initial Total of Sales Ledger Balances} & 15270 \\ \text{Add:} & \\ \quad \text{c. Debtor balance not posted to customer's account} & 560 \\ \text{Less:} & \\ \quad \text{a. Returns from S-Lee not recorded} & (80) \\ \quad \text{d. Contra entry not recorded in customer's account} & (320) \\ \quad \text{f. Discount allowed not entered in customer's account} & (70) \\ \quad \text{g. Returns from B-Howard ($740 - $470)} & (270) \\ \quad \text{h. Bad debt not recorded} & (210) \\ \quad \text{i. Discount allowed posted to debit ($120 \times 2$)} & (240) \\ \hline \textbf{Corrected Total of Sales Ledger Balances} & \boxed{\textbf{14640}} \\ \hline \end{array}$
The corrected balance of the Sales Ledger Control Account (\14640 $) now agrees with the corrected total of the Sales Ledger Balances ($ $14640$).

On 31 October 1999 Duke listed the balances contained in his sales ledger. These balances totaled 15270 but on the same date the balance of the sales ledger control account was 14790 After investigation the following errors were found.

Answer

Step-by-step solution

Sales Ledger Control Account Reconciliation

Start with the unadjusted Sales Ledger Control Account balance.

Adjust the Sales Ledger Control Account for errors.

Statement Amending Total of Sales Ledger Balances

Start with the initial total of sales ledger balances.

Adjust the total of Sales Ledger Balances for errors affecting individual accounts.

Try one yourself

Still stuck on this one?