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Accounting reconciliations

1.4 Reconciling control accounts and ledger accounts

The sequence for a trade receivables ledger control account would be as follows:

Step 1  Rework the balance on the control
account.

 Check that all totals have been
Step 2 correctly transferred from the books of
prime entry to the control account.

Step 3  Recalculate the list of receivables’
balances looking for errors.

 Recalculate the columns of the books
Step 4
of prime entry.

If the balances are still incorrect, it will be necessary to start looking at entries in
more detail.

Tutor notes guidance – discussion points

Take students through TYU2 from Chapter 14 of the Study Text discussing

each suggestion. Work through illustration 1 from chapter 14 with students.

Illustrations and further practice

Now try question TYU 3 and 4 from Chapter 14 of the Study Text.

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