The balance of Artemis' sales ledger control account on 31 July 2023 was $39 130. On that same date, the list of balances contained in the sales ledger amounted to $36 750. After investigation the following errors were found. 1. A credit sale of $3 050 had been made to Gilles but no entries had been made to record this transaction. 2. The discount allowed total in the cash book had been undercast by $370. 3. A sales retum of $600 from Betty was correctly recorded in the sales ledger but had been omitted from the total of the return inwards journal. 4. A cheque received in June from Francis for $1 840 had been dishonoured. No entries have been made to record this dishonoured cheque. 5. A credit sale of $1 500 to Harry was correctly recorded in the sales journal but no entry had been made in the sales ledger. 6. The sales recorded in the control account had been overcast by $250. 7. A receipt from a credit customer of $340 had been omitted from the list of balances. REQUIRED: a) Prepare a corrected sales ledger control account. b) Prepare a statement amending the total of the sales ledger balances to reconcile it with the control account balance
The balance of Artemis' sales ledger control account on 31 July 2023 was $39 130. On that same date, the list of balances contained in the sales ledger amounted to $36 750. After investigation the following errors were found. 1. A credit sale of $3 050 had been made to Gilles but no entries had been made to record this transaction. 2. The discount allowed total in the cash book had been undercast by $370. 3. A sales retum of $600 from Betty was correctly recorded in the sales ledger but had been omitted from the total of the return inwards journal. 4. A cheque received in June from Francis for $1 840 had been dishonoured. No entries have been made to record this dishonoured cheque. 5. A credit sale of $1 500 to Harry was correctly recorded in the sales journal but no entry had been made in the sales ledger. 6. The sales recorded in the control account had been overcast by $250. 7. A receipt from a credit customer of $340 had been omitted from the list of balances. REQUIRED: a) Prepare a corrected sales ledger control account. b) Prepare a statement amending the total of the sales ledger balances to reconcile it with the control account balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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