The sales ledger control account of a trader showed a debit balance of $28500 at the end of the financial period. This did not agree with the total of the individual trade receivables accounts in the sales ledger. The following errors were discovered. 1 A dishonoured cheque for $300 from a credit customer had been entered on the credit side of the sales ledger control account. 2 Contras of $500 entered correctly in the sales ledger had been omitted from the sales ledger control account. 3 Discounts allowed of $700 had not been entered in the sales ledger control account. Which figure should be used for trade receivables in the financial statements?

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 Feb/Mar 2023 examination, Paper 1 Variant 2 (9706_m23_qp_12.pdf).

Question

The sales ledger control account of a trader showed a debit balance of $28500 at the end of the financial period. This did not agree with the total of the individual trade receivables accounts in the sales ledger. The following errors were discovered. 1 A dishonoured cheque for $300 from a credit customer had been entered on the credit side of the sales ledger control account. 2 Contras of $500 entered correctly in the sales ledger had been omitted from the sales ledger control account. 3 Discounts allowed of $700 had not been entered in the sales ledger control account. Which figure should be used for trade receivables in the financial statements?

Oracle Prep · Accepted Answer

The correct answer is B: $27 900.

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