You are required to prepare: (a) an adjusted Debtors Control Account; (b) a statement to reconcile the total of the Debtors Ledger and the adjusted balance of the Debtors Control Account.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 43P
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Jackson balanced his Debtors Control Account on 30 September 2005 and it
showed a debit balance of $16,300. He checked this balance with the individual
debtors' balance in the Debtors Ledger which shows a debit balance of
$14,750. When he examined the records, the following errors were found:
(i) Goods costing $1,200 had been sold to Summer on credit but the
transaction was totally omitted from the books.
(ii) Spring was allowed cash discount of $50. This amount was entered
correctly in the Cash Book but was recorded on the wrong side of his
account.
(iii) The Sales Returns Journal showed that a credit note for $200 had been
sent to Winter but it had not been posted to Winter's account.
(iv) Bad debts written off $1,500 had been recorded in the Sales Ledger but
no entry was made in the General Ledger.
(v) Autumn's debit balance of $350 had been omitted from the Debtors
Ledger balance.
You are required to prepare:
(a) an adjusted Debtors Control Account;
(b) a statement to reconcile the total of the Debtors Ledger and the adjusted
balance of the Debtors Control Account.
Transcribed Image Text:Jackson balanced his Debtors Control Account on 30 September 2005 and it showed a debit balance of $16,300. He checked this balance with the individual debtors' balance in the Debtors Ledger which shows a debit balance of $14,750. When he examined the records, the following errors were found: (i) Goods costing $1,200 had been sold to Summer on credit but the transaction was totally omitted from the books. (ii) Spring was allowed cash discount of $50. This amount was entered correctly in the Cash Book but was recorded on the wrong side of his account. (iii) The Sales Returns Journal showed that a credit note for $200 had been sent to Winter but it had not been posted to Winter's account. (iv) Bad debts written off $1,500 had been recorded in the Sales Ledger but no entry was made in the General Ledger. (v) Autumn's debit balance of $350 had been omitted from the Debtors Ledger balance. You are required to prepare: (a) an adjusted Debtors Control Account; (b) a statement to reconcile the total of the Debtors Ledger and the adjusted balance of the Debtors Control Account.
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