Gce Model Questions Vol1 2018 Financial Accounting Question 39

The Trade Receivables Control Account shows a closing debit balance of \(\text{₦}85,000\). The subsidiary ledger at the start of the month contains three debtors: A - \(\text{₦}30,000\), B - \(\text{₦}25,000\), C - \(\text{₦}20,000\). During the month the following transactions occur:\n1. Credit sales to Debtor A of \(\text{₦}12,000\).\n2. Cash received from Debtor B of \(\text{₦}10,000\).\n3. Bad debt written off for Debtor C of \(\text{₦}5,000\).\n4. Credit sales to a new Debtor D of \(\text{₦}15,000\).\nAt month‑end the control account still shows \(\text{₦}85,000\) debit. Determine the balance that should appear for Debtor D in the subsidiary ledger and state whether the control account is correctly reconciled. If not, give the discrepancy.