The following receivables ledger control account prepared by a trainee accountant contains a number of errors:
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||||
| $ | $ | ||||
| 20X5 | 20X5 | ||||
| 01-Jan | Balance | 153,500 | 31-Dec | Credit sales | 75,250 |
| 31-Jan | Cash from credit customers | 77,750 | Discounts allowed | 850 | |
| Credit sales | 38,550 | Irrecoverable debts written off |
8,000 | ||
| Contras against amounts due to suppliers in payables ledger |
2163 | Interest charged on overdue accounts |
400 | ||
| – | Balance | 148,913 | |||
| 233,413 | 233,413 | ||||
What should the closing balance on the control account be after the errors in it have been corrected?
Answer
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 153,500 | Cash from customers | 77,750 |
| Credit sales | 75,250 | Discounts allowed | 850 |
| Interest charged on overdue accounts |
400 | Irrecoverable debts written off | 8,000 |
| Contras | 2,163 | ||
| – | Closing balance | 140,387 | |
| 229,150 | 229,150 | ||