Question 1

The receivables ledger control account shows a balance of $45,600. The total of the individual customer balances in the receivables ledger is $44,200. Upon investigation, it is discovered that a sales invoice for $1,400 was recorded in the sales day book as $2,800, but correctly posted to the customer's individual account. What is the correct receivables balance to be shown in the statement of financial position?

Accepted Answer

Determine which record is wrong. The sales day book total feeds the control account, so the control account is wrong. The individual account was posted correctly, so the list of balances is correct.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Adjusting the list of balances instead of the control account, or adjusting both.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 3

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