Reconciliation and verification：練習題

A bookkeeper discovered the following errors in the accounts of a business:

1. Discount allowed of \(\$500\) had been debited to the discount received account.
2. A cash sale of \(\$200\) had been completely omitted from the records.
3. The purchase of a computer for \(\$1,000\) had been debited to the office repairs account.

What is the total effect of these errors on the draft profit for the year?

Explain what an 'error of omission' is in the context of preparing a trial balance and state whether it affects the agreement of the trial balance.

A business maintains a sales ledger control account. On 30 June, the balance of this account was \(\$42,500\). It was discovered that a customer's credit note for \(\$450\) had been correctly recorded in the sales returns journal but omitted from the customer's personal account. Calculate the total of the sales ledger balances after this error is rectified.

A business’s sales ledger control account shows a balance of \(\$42,500\) and the total of the individual customer balances is \(\$41,200\). Investigation reveals the following:

1. A sales invoice for \(\$850\) was correctly recorded in the sales journal but omitted from the customer's personal account.
2. A credit note of \(\$250\) sent to a customer was correctly recorded in the sales returns journal but debited to the customer's personal account instead of being credited.
3. Cash received from a customer of \(\$400\) was entered in the cash book but not posted to the ledger.
4. An irrecoverable debt of \(\$150\) written off was correctly recorded in the customer's account but was not recorded in the control account.

What is the final reconciled balance after correcting all errors in both the control account and the list of individual balances?

Zoe is a sole trader. On 31 January 2024, her cash book (bank column) showed a debit balance of $ 3 450. On the same date, the bank statement showed a credit balance of $ 2 100. Upon investigation, the following discrepancies were identified:

• Cheque number 001 for $ 650, issued to a supplier on 28 January, had not yet been presented to the bank.
• A direct debit for rent of $ 800 had been paid by the bank on 30 January but not recorded in the cash book.
• A standing order for insurance of $ 150 was paid by the bank on 25 January but not entered in the cash book.
• Receipts totaling $ 1 500, deposited on 31 January, were not shown on the bank statement.
• Bank charges of $ 30 appeared on the bank statement but were not in the cash book.
• A credit transfer for $ 120 from a customer appeared on the bank statement but was not recorded in the cash book.
• Cheque number 002 for $ 200, received from a customer, had been dishonoured by the bank due to insufficient funds but no entry had been made in the cash book.

Required:

(a) Update Zoe's cash book (bank column) as at 31 January 2024.

(b) Prepare a bank reconciliation statement for Zoe as at 31 January 2024.

On 31 October 2023, the sales ledger control account of a business showed a debit balance of \(\$18,450\). However, the total of the individual customer balances in the sales ledger amounted to \(\$17,210\). Investigations revealed the following errors and omissions:

1. A customer balance of \(\$420\) had been omitted from the list of balances.
2. The sales journal had been overcast by \(\$500\).
3. A credit note for \(\$180\) issued to a customer was correctly entered in the customer's account but was recorded as \(\$810\) in the sales returns journal.

4. A contra entry of \(\$300\) between the sales ledger and the purchase ledger had been recorded in the customer's individual account but no entry had been made in the control account.
5. A debt of \(\$250\) previously written off as irrecoverable was recovered. The bookkeeper debited the cash book and credited the customer's individual account, but no other entries were made.
6. A sales invoice for \(\$640\) was correctly recorded in the sales journal but was posted to a customer's account as \(\$460\).

(a) Calculate the corrected balance on the sales ledger control account.
(b) Calculate the corrected total of the list of sales ledger balances.
(c) Explain two reasons why a business should maintain control accounts for its ledgers.