Fox Co maintain control accounts in respect of both #8212

Fox & Co. maintain control accounts, in respect of both the sales ledger and purchases ledger,
within their nominal ledger. On 31 December 20X2 the net total of the balances extracted from
the sales ledger amounted to £9,870, which did not agree with the balance shown on the sales
ledger control account. An examination of the books disclosed the following errors and
omissions, which when rectified resulted in the corrected net total of the sales ledger balances
agreeing with the amended balance of the control account.1. £240 standing to the credit of
Rice's account in the purchase ledger had been transferred to his account in the sales ledger,
but no entries had been made in the control accounts in respect of this transfer.2. Debit
balances of £42 in the sales ledger had been extracted as credit balances when the balances
were listed at 31 December 20X2.3. £8,675, a month's total in the sales day book, had been
posted to the control account as £8,765 although posted correctly to the sales account.4. A
balance of £428 owing by Stone had been written off to bad debts as irrecoverable, but no entry
had been made in the control account.5. Entries on the debit side of Hay's account in the sales
ledger had been under cast by £100.6. The following sales ledger balances had been omitted
from the list of balances at 31 December 20X2 - debits £536, credits £37.7. The sale of goods
to Croft amounting to £60 had been dealt with correctly and debited to his account. Croft had
returned such goods as not being up to standard and the only treatment accorded thereto was
the crossing out of the original entry in Croft's account.8. £22 allowed to Field as discount had
been correctly recorded and posted. Subsequently, this discount had been disallowed and a like
amount had been entered in the discounts received column in the cash book and posted to
Field's account in the purchases ledger and included in the total of discounts
received.Requireda. Give the journal entries, where necessary, to rectify these errors and
omissions, and, if no journal entry is necessary, state how they should be rectified.b. Prepare
the sales ledger control account showing the balance before and after rectification has been
made, and reconcile the balance carried forward on this account with the total of balances
extracted from the sales ledger?View Solution:
Fox Co maintain control accounts in respect of both

ANSWER
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