Neco 2020 Financial Accounting Question 8

Beta Manufacturing Co. uses control accounts to summarise its subsidiary ledgers. The following information relates to the month of February 2024: - Opening balance of Sales Ledger Control Account (SLCA): ₦500,000 (debit). - Total credit sales recorded in the sales journal for February: ₦820,000. - Sales returns (goods returned by customers) recorded: ₦35,000 (debit). - Cash receipts from customers (as per cash receipts journal): ₦720,000 (debit). - An error was discovered: a cash receipt of ₦15,000 was posted twice in the cash receipts journal. - Closing balance of the Sales Ledger (as per subsidiary ledger) is reported as ₦65,000 (debit). Using the above data, answer the following: a) Prepare the Sales Ledger Control Account for February 2024, showing the corrected closing balance after adjusting for the double‑posted cash receipt. b) Identify the discrepancy (if any) between the control account balance and the subsidiary ledger balance and suggest the journal entry required to rectify it. c) Explain the purpose of maintaining a control account in the double‑entry bookkeeping system.