At 31 December 2021, the sales ledger control account had a balance of $19100 while the total balances in the sales ledger were $20900. The following reconciliation statement had been prepared after the errors were located.
balance of sales ledger control account $19100
credit sales omitted from the sales journal $1600
discount allowed understated in sales ledger $200
total of balances in the sales ledger $20900
What is the correct amount of total trade receivables as shown in the statement of financial position?

Q: What topic does this question test?

This question tests Control Accounts and Error Correction 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 May/June 2022 examination, Paper 1 Variant 2 (9706_s22_qp_12.pdf).

Question

At 31 December 2021, the sales ledger control account had a balance of $19100 while the total balances in the sales ledger were $20900. The following reconciliation statement had been prepared after the errors were located.
balance of sales ledger control account $19100
credit sales omitted from the sales journal $1600
discount allowed understated in sales ledger $200
total of balances in the sales ledger $20900
What is the correct amount of total trade receivables as shown in the statement of financial position?

Oracle Prep · Accepted Answer

The correct answer is D: $20700.

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