The following balances have been included in a sales ledger control account for the year ended 31 January 19_6.

(1) It was discovered that a batch of sales invoices totalling £3,400 had been omitted from the accounting records.
(2) Cash sales of £600 had been included in this total.
(3) Discounts allowed of £350, included in this total, had been omitted from the personal ledger.
(4) The personal ledger accounts of the ‘bad debtors’ had been debited with £1 550, whilst the correct entry had been made into the control account.
(5) Credit balances in the sales ledger of £400 had been transferred during the year into the purchases ledger. No record of this transfer had been made in the control account, although the personal accounts had been correctly adjusted.

(a) Prepare the sales ledger control account for the year ended 31 J anuary 19_6. = (9 marks)

(b) Prepare a statement reconciling the sales ledger balances with the control account balance.

(c) Under which balance sheet heading should credit balances contained within a limited company’s sales ledger be shown?

The book-keeper balanced the individual customers’ accounts and prepared a Debtors’ Schedule of the closing balances which totalled £25 586.83 (net of credit balances).
Unfortunately both the accountant and the book-keeper had been careless, and in addition to the errors which the accountant had made in the control account above, it was subsequently discovered that:
(1) in an individual debtor’s account, a debt previously written off but now recovered (£161.20) had been correctly credited and redebited but the corresponding debit had not been posted in the control account;
(2) discounts allowed had been correctly posted to individual debtor’s accounts but had been under-added by £100 in the memorandum column in the combined bank and cash book;
(3) allowances to customers shown in the control account included sums totalling £341.27 which had not been posted to individual debtors’
accounts;
(4) a cheque for £2 567.10 received from a custe:ner had been posted to his account as £2 576.10;
(5) the credit side of one debtor’s account had been over-added by £10 prior to the derivation of the closing balance;
(6) a closing credit balance of £63.27 on one debtor’s account had been included in the Debtors’ Schedule among the debit balances;
(7) the purchase ledger contras, representing the settlement by contra transfer of amounts owed to credit suppliers, had not been posted to individual debtors’ accounts at all;
(8) the balance on one debtor’s account, £571.02, had been completely omitted from the Debtors’ Schedule.
Required:
Identify and effect the adjustments to the Sales ledger control account and Debtors’ Schedule, as appropriate, so that the net balances agree at 30 November 19_3.

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Balance at 1 February 19_5 Sales (note 1) 12 087 117 635 Receipts from customers (note 2) 90 019 3 .000 4 200 1 550 Discounts allowed (note 3) Goods returned by customers Bad debts written off (note 4) Balances extracted from the sales ledger at 31 January 19_6 were Debit Credit (note 5) 35 588 185