ACCA F3 MCQ Ledger Control Account
Steven's receivables ledger control account does not agree with the total of the receivables ledger. He discovered the following errors:
1. A sales invoice has been entered into the sales day book as $469 rather than $496.
2. The receivables column of the cash received daybook has been undercast by $2,000.
3. A control of $7,000 against the purchase ledger has only been entered in the control account.
Which of the above errors would cause a difference between the receivables control account and the total of the receivable ledger?
| A. | 2 and 3 only |
| B. | 1 and 3 only |
| C. | 1 and 2 only |
| D. | 1,2 and 3. |
| Answer. | A. |
Examiner's comment on this question.
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Candidates typically struggle on questions covering the reconciliation of control accounts to the individual ledgers. Answering this question should be straightforward, as each option can be evaluated individually and then the answer selected. However, only 29% of candidates correctly answered this question.
The receivables control account shows the summarised transactions that have occurred in a period. The receivables ledger shows the individual customer accounts and the total of the balances in the receivables ledger should agree to the control account balance. The key to arriving at the correct answer is to consider which of the three options will affect only the control account or only the receivables ledger. If an error occurs in both accounts then it will not be a reconciling item when the two are compared.
Looking at each option in turn, option 1 will not cause a difference in the two accounts due to the way transactions are posted into the accounts. The sales day book lists the sales for a period and is then totalled and posted to the control account as a single balance. The individual sales making up that total are posted to the individual customer accounts in the receivables ledger. Therefore if an invoice is entered incorrectly in the day book then it is posted to the receivables ledger and also to the control account as part of the total. It cannot be a reconciling item.
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