A Accounting

Closing balance for Receivables Ledger Control Account ( video below)

The following control account has been prepared by a trainee accountant:

RECEIVABLES LEDGER CONTROL ACCOUNT 
$ $
Opening balance 77,150 Cash received from credit customers 36,800
Credit sales 38,550 Discounts allowed to credit customers 350
Cash sales 22,025 Interest charged on overdue accounts 600
Contras against credit payables balances in ledger 1,150 Irrecoverable debts written off 1,225
Allowance for receivables 700
            – Closing balance 99,200
138,875 138,875

What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?

Answer

RECEIVABLES LEDGER CONTROL ACCOUNT
$ $
Opening balance 77,150 Cash received 36,800
Credit sales 38,550 Discounts allowed 350
Interest charged 600 Contra 1,150
Irrecoverable debts 1,225
             – Closing balance 76,775
116,300 116,300


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