Schedule of Receivables – NBC Institute

FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

Question

a) The transactions below relate to Affram Ltd for the year ended 30 April 2022:

1 May 2021 balance b/d:

Account	GHȼ
Sales Ledger Control Account	180,000 Dr

Totals for the year 1 May 2021 to 30 April 2022:

Item	Amount (GHȼ)
Credit sales	600,500
Receipts from customers	690,100
Discount allowed	12,000
Irrecoverable debts	5,400
Sales returns	4,600
Dishonoured cheques from customers	3,000
Contras between sales and purchases	14,000

The Sales Ledger Control Account balance failed to agree with the total receivables of GHȼ67,800 as shown by the Schedule of Receivables.

The following errors were subsequently discovered:

The discount allowed total in the Cash Book had been overstated by GHȼ400.
The total of sales in the Sales Journal had been understated by GHȼ3,000.
A cheque received from a customer for GHȼ2,000, correctly processed through the books, had subsequently been dishonoured. This item had been correctly dealt with in the customer’s account, but no other entry has yet been made.
Goods costing GHȼ5,000 had been returned by a customer. The transaction had been correctly recorded in the Sales Ledger Control Account, but this has not been entered in the customer’s account.
Papa Yaw, a customer, has been declared bankrupt and his debt of GHȼ1,500 is to be written off. No entries have yet been made.

Required:

i) Prepare the Receivables Control Account for the year ended 30 April 2022. (8 marks)
ii) Prepare a statement reconciling the corrected balance on the Receivables Control Account with the corrected balance on the Schedule of Receivables. (3 marks)

b) Book-keeping is the process of recording financial transactions in the accounting records (the books) of an entity. Transactions are initially recorded in books of prime entry also known as books of original entry.

Required:

Identify SIX (6) books of prime entry and their functions. (9 marks)

Answer

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Tags: Books of Prime Entry, Error Correction, Receivables Control Account, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: JULY 2023

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

Question

(a) The Sales Ledger Control Account of PC Ltd for the year ended 31st December 2014 has been prepared from the following information:

The Sales Ledger Control Account balance, which is part of the double-entry system, failed to agree with the total receivables of GH¢189,380 as shown by the Schedule of Receivables. The following errors were subsequently discovered:

i) A customer had returned goods to PC Ltd at the selling price of GH¢2,400. The goods had been bought on credit. No entries had been made to record the return of the goods in the accounts of PC Ltd.
ii) The discounts allowed column in the cash book had been overcast by GH¢1,080.
iii) No contra entry had been made in the receivables account in the sales ledger in respect of purchases by PC Ltd of goods at a list price of GH¢2,000. PC Ltd received a trade discount of 10% on these goods. This transaction had been correctly dealt with in the Sales Ledger Control Account.
iv) A credit sale of GH¢3,520 to JT Ltd was correctly recorded in the Sales Ledger Control Account, but no other entry had been made.
v) A cheque received from a customer for GH¢6,900, correctly processed through the books, had subsequently been dishonoured. No entries have yet been made to record this dishonoured cheque.
vi) DT Ltd, a customer, has recently been declared bankrupt and the debt of GH¢3,500 is to be written off, but no entries have yet been made.

Required:
a) Prepare a revised Sales Ledger Control Account for the year ended 31 December 2014. (9 marks)
b) Prepare a statement showing the correct total of the Schedule of Receivables for the year ended 31 December, 2014. (5 marks)
c) Discuss TWO advantages to PC Ltd of using control accounts. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Control Accounts, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: MAY 2016

FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

Question

a) The transactions below relate to Affram Ltd for the year ended 30 April 2022:

1 May 2021 balance b/d:

Account	GHȼ
Sales Ledger Control Account	180,000 Dr

Totals for the year 1 May 2021 to 30 April 2022:

Item	Amount (GHȼ)
Credit sales	600,500
Receipts from customers	690,100
Discount allowed	12,000
Irrecoverable debts	5,400
Sales returns	4,600
Dishonoured cheques from customers	3,000
Contras between sales and purchases	14,000

The Sales Ledger Control Account balance failed to agree with the total receivables of GHȼ67,800 as shown by the Schedule of Receivables.

The following errors were subsequently discovered:

The discount allowed total in the Cash Book had been overstated by GHȼ400.
The total of sales in the Sales Journal had been understated by GHȼ3,000.
A cheque received from a customer for GHȼ2,000, correctly processed through the books, had subsequently been dishonoured. This item had been correctly dealt with in the customer’s account, but no other entry has yet been made.
Goods costing GHȼ5,000 had been returned by a customer. The transaction had been correctly recorded in the Sales Ledger Control Account, but this has not been entered in the customer’s account.
Papa Yaw, a customer, has been declared bankrupt and his debt of GHȼ1,500 is to be written off. No entries have yet been made.

Required:

Identify SIX (6) books of prime entry and their functions. (9 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Books of Prime Entry, Error Correction, Receivables Control Account, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: JULY 2023

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

Question

(a) The Sales Ledger Control Account of PC Ltd for the year ended 31st December 2014 has been prepared from the following information:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Control Accounts, Sales Ledger, Schedule of Receivables
Level: Level 1

Topic: Control accounts and account reconciliations
Series: MAY 2016

Question Tag: Schedule of Receivables

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FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

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FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

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FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

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FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations

Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.

You're reporting an error for "FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations"

FA – May 2016 – L1 – Q2 – Control accounts and account reconciliations

Prepare a revised Sales Ledger Control Account, a corrected Schedule of Receivables, and discuss advantages of using control accounts.

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