ACCA F3 Past Exam Receivable

The following control account has been prepared by a trainee accountant:

Receivables ledger control account

$ $
Opening Balance 600,000 Cash received from credit customers 40,000
Credit Sales 400,000 Discount allowed to credit customers 3,000
Cash sales 80,000 Interest charged on overdue accounts 4,000
Contras against credit balances in payable ledger 40,000Bad debt written off 40,000
Allowance for receivable 50,000
Closing balance 983,000
Total 1,120,000Total 1,120,000

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 600,000 Cash received from credit customers 40,000
Credit Sales 400,000 Discount allowed to credit customers 3,000
Interest charged on overdue accounts 4,000 Contras against credit balances in payable ledger 40,000
Bad debt written off 40,000
Allowance for receivable 50,000
Closing balance 831,000
Total 1,004,000Total 1,004,000

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