One of your colleagues has asked for your assistance. He is preparing the annual accounts for a client, but cannot agree the balances on the sales ledger and purchase ledger control accounts with the listing of the individual account balances. Following balances are provided as on December 31, 2011.

The sales ledger control account has a debit balance of GH¢ 32,784 and a credit balance of GH¢ 3,000.
The net balance of the sales ledger control account is:

The net balance of individual customer accounts is GH¢ 28,956 (Dr).

• vi. Set off with supplier (GH¢ 750): The personal accounts were updated, but the control account was not. The SLCA should be credited to reduce receivables. $$\text{SLCA adjustment} = - \text{GH¢ } 750$$
• vii. Discounts allowed not posted to nominal ledger (GH¢ 328): Discounts allowed reduce receivables. The SLCA should have been credited. $$\text{SLCA adjustment} = - \text{GH¢ } 328$$
• viii. Sales day book errors:
  • Underestimated by GH¢ 53: The SLCA (debit) was understated. $$\text{SLCA adjustment} = + \text{GH¢ } 53$$
  • Overstated by GH¢ 29: The SLCA (debit) was overstated. $$\text{SLCA adjustment} = - \text{GH¢ } 29$$

• v. Sales invoice posted incorrectly (GH¢ 2,570 as GH¢ 2,750): The customer's account is overstated by GH¢ 180 (GH¢ 2,750 - GH¢ 2,570). $$\text{List adjustment} = - \text{GH¢ } 180$$
• vi. Set off with supplier (GH¢ 750): The customer's personal account was updated, reducing the balance. $$\text{List adjustment} = - \text{GH¢ } 750$$
• ix. Misposting within subsidiary ledger (GH¢ 427): Posting to the wrong customer account does not affect the total of the list of balances. $$\text{List adjustment} = \text{GH¢ } 0$$

Purchases Ledger Control Account Reconciliation

The purchases ledger control account balance is GH¢ 22,372 (Cr).
The net balance of individual supplier accounts is GH¢ 21,031 (Cr).

• vi. Set off with customer (GH¢ 750): The personal accounts were updated, but the control account was not. The PLCA should be debited to reduce payables. $$\text{PLCA adjustment} = + \text{GH¢ } 750$$
• x. Goods returned not recorded in purchase return book (GH¢ 2,100): The credit note was recorded in the supplier's account, but the purchase return book (which feeds the PLCA) was not updated. The PLCA (credit) is overstated. $$\text{PLCA adjustment} = - \text{GH¢ } 2,100$$

• vi. Set off with customer (GH¢ 750): The supplier's personal account was updated, reducing the balance. $$\text{List adjustment} = - \text{GH¢ } 750$$
• x. Goods returned (GH¢ 2,100): The credit note was correctly recorded in the supplier's account. $$\text{List adjustment} = \text{GH¢ } 0$$

Summary of Adjusted Balances:

• Adjusted Sales Ledger Control Account Balance: $\boxed{\text{GH¢ } 28,730 (\text{Dr})}$
• Adjusted List of Individual Customer Account Balances: $\boxed{\text{GH¢ } 28,026 (\text{Dr})}$
• Adjusted Purchases Ledger Control Account Balance: $\boxed{\text{GH¢ } 21,022 (\text{Cr})}$
• Adjusted List of Individual Supplier Account Balances: $\boxed{\text{GH¢ } 20,281 (\text{Cr})}$