ACCA Applied Knowledge · Financial Accounting · Incomplete records
Kest Ltd's receivables ledger control account showed: opening balance $20,000; credit sales $150,000; cash received $138,000; discounts allowed $3,000; irrecoverable debts written off $2,500; a customer's cheque for $1,800 dishonoured and returned by the bank. What is the closing receivables control account balance?
The closing balance is $28,300, calculated as opening 20,000 plus sales 150,000 plus the dishonoured cheque 1,800, less receipts 138,000, discounts 3,000 and write-offs 2,500. This figure is not among the options.
- A$27,300Correct
- B$25,500
- C$29,100
- D$23,700
Explanation
Debits: 20,000 + 150,000 + dishonoured cheque 1,800 = 171,800. Credits: 138,000 + 3,000 + 2,500 = 143,500. Balance = 171,800 - 143,500 = 28,300.
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