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Chapter 20

Example 5: Solution

Each adjustment is likely to affect either the control account or the individual
balances; it is also possible that an error affects both.
$
Adjustments to receivables balance
Total per original list 128,106
Credit balance listed as debit (2 × $128) (256)
Debit side overcast (100)

————
Revised total 127,750
————
Adjustments to control account (probably easiest to show this as a ledger
account):

$ $
Balance b/d 128,545 Error in sales daybook 90
Irrecoverable debts
written off 240
Discounts allowed
(2 × $185) 370
Contra 95
Revised balance 127,750
———— ————
128,545 128,545

———— ————

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