FINANCIAL ACCOUNTING

MULTIPLE CHOICE

Question 19

The following information in respect of August 20.20 was obtained from the financial records of Mthembu Traders:

The balance of the list of individual debtors per trade receivables ledger, R14 402

In the process of reconciling the balance on the trade receivables control account in the general ledger with the list of balances per trade receivables ledger, the following errors were discovered:

1. An adding error in the trade receivables list resulted in the total being undercast by R240.

2. A credit sale of R730 to S Naidoo was left out of all records in error.

3. A debtor, P Cele, who returned goods valued R178 on 24 August 20.20, was entered correctly in the sales returns journal but was posted as R196 in the personal account of P Cele.

4. An invoice for merchandise sold on credit to debtor B Themba, R136 was recorded twice in the sales journal and posted accordingly.

Which of the following options represent the correct option for the correction of these errors in the trade receivables list:

A. MTHEMBU TRADERS RECONCILIATION OF TRADE RECEIVABLES LIST: Debit R Credit R Total of the list of trade receivables balances Add total undercast in sales journal S Naidoo - sales P Cele - error B Themba Correct total of the list of trade receivables balances 14 402 240 730 18 136 15 254 15 390 15 390 B. MTHEMBU TRADERS RECONCILIATION OF TRADE RECEIVABLES LIST: Debit R Credit R Total of the list of trade receivables balances Add total undercast in sales journal S Naidoo - sales P Cele - error B Themba Correct total of the list of trade receivables balances 14 402 240 730 178 136 15 414 15 550 15 550 C. MTHEMBU TRADERS RECONCILIATION OF TRADE RECEIVABLES LIST: Debit R Credit R 14 402 240 730 Total of the list of trade receivables balances Add total undercast in sales journal S Naidoo - sales P Cele - error B Themba Correct total of the list of trade receivables balances 178 272 15 278 15 550 15 550 D. MTHEMBU TRADERS RECONCILIATION OF TRADE RECEIVABLES LIST: Debit R Credit R Total of the list of trade receivables balances Add total undercast in sales journal S Naidoo - sales P Cele - error B Themba Correct total of the list of trade receivables balances 14 402 240 730 18 272 15 118 15 390 15 390 E. MTHEMBU TRADERS RECONCILIATION OF TRADE RECEIVABLES LIST: Debit R Credit R Total of the list of trade receivables balances Add total undercast in sales journal S Naidoo - sales P Cele -error B Themba Correct total of the list of trade receivables balances 14 402 240 730 18 136 15 526 15 526 15 526