The Receivables control account of C Ltd is. A list of individual customer balances at the month-end shows debit balances as £54,468.59 and credit balances as £520.80. The following facts have now been discovered:

(1) No entries have been made in the Sales ledger for the debt collection fees and bad debts written off.

(2) The Sales Day Book has been overcast by £500.

(3) The Sales returns Day Book has been undercast by £10.

(4) A credit balance of £673.46 has been taken as a debit balance when listing the customer balances.

(5) The account of a customer who settled by contra was debited with £378.82.

(6) A debit balance on a customer’s account of £347.58 has been stated in the list as £374.85.

(7) The dishonoured cheque had been entered in the Sales ledger as credit £601.75.

Required:

(a) Correct the Trade receivables control account.

(b) Reconcile the corrected Control account balance with the sum of the individual balances.

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Balance b/d Sales Trade receivables control account Dishonour of cheque Debt collection fees Balance c/d £ 70,814.16 54,738.36 607.15 108.81 1,194.26 Balance b/d Sales returns Cash Book Contra Bad debts Balance c/d £ 1,198.73 2,344.39 68,708.27 378.82 474.16 54,358.37