ACCA F3 Past Exam Receivable
The following control account has been prepared by a trainee accountant:
Receivables ledger control account
$ | $ | ||
Opening Balance | 800,000 | Cash received from credit customers | 70,000 |
Credit Sales | 800,000 | Discount allowed to credit customers | 4,000 |
Cash sales | 30,000 | Interest charged on overdue accounts | 7,000 |
Contras against credit balances in payable ledger | 70,000 | Bad debt written off | 40,000 |
Allowance for receivable | 50,000 | ||
Closing balance | 1,529,000 | ||
Total | 1,700,000 | Total | 1,700,000 |
What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?
SUGGESTED SOLUTION
$ | $ | ||
Opening Balance | 800,000 | Cash received from credit customers | 70,000 |
Credit Sales | 800,000 | Discount allowed to credit customers | 4,000 |
Interest charged on overdue accounts | 7,000 | Contras against credit balances in payable ledger | 70,000 |
Bad debt written off | 40,000 | ||
Allowance for receivable | 50,000 | ||
Closing balance | 1,373,000 | ||
Total | 1,607,000 | Total | 1,607,000 |