Barney Ltd has recently appointed a new accountant who has produced a Sales ledger control account for the month of May 2012 as follows:

The actual list of Trade receivables ledger balances at 31 May, after deducting credit balances, was £27,480. Three errors were identified as follows:

(a) A credit balance of £120 at 31 May had been added to the list of closing debtors.

(b) The debit balance of Ted Brown (£340) had been listed as Ted Bragg.

(c) The debit balance of Sophie Tree (£490) has been omitted from the list.

Required:

(a) Re-drafted Sales ledger control account

(b) A reconciliation of the sum of the list of Trade receivables ledger balances with the balance in the Control account.

Transcribed Image Text:

Opening debtors Cash and cheques received Closing credit balances on the Trade receivables ledger £ 45,230 189,630 150 235,010 Opening credit balances in the Trade receivables ledger Sales invoices Credit notes issued to customers Bad debts written off Provision for doubtful debts Contra Trade payables ledger Closing debtors (balancing figure) 3 260 175,320 450 2,300 3,000 180 53,500 235,010