A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42650. The following was discovered.

1 An irrecoverable debt of $500 in the general journal has not been recorded in the sales ledger.
2 The sales journal has been incorrectly added and must be reduced by $750.
3 The sales ledger control account includes the discount received of $400. It should have been discount allowed, $600.
4 Sales to J Brown, $640, have not been entered in his account.

What was the correct total of the sales ledger balances?

Q: What topic does this question test?

This question tests Control Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2019 examination, Paper 1 Variant 2 (9706_w19_qp_12.pdf).

Question

A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42650. The following was discovered.

1 An irrecoverable debt of $500 in the general journal has not been recorded in the sales ledger.
2 The sales journal has been incorrectly added and must be reduced by $750.
3 The sales ledger control account includes the discount received of $400. It should have been discount allowed, $600.
4 Sales to J Brown, $640, have not been entered in his account.

What was the correct total of the sales ledger balances?

Oracle Prep · Accepted Answer

The correct answer is D: $42790.

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