Neco Model Questions Vol1 2017 Financial Accounting Question 45

Practice objective / multiple choice question 45 from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 45 NECO_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

The sales ledger control account shows a closing debit balance of ₦85,000. The subsidiary sales ledger lists the following customer balances: A - ₦30,000; B - ₦20,000; C - ₦15,000; D - ₦10,000. During the year two errors occurred: (i) a credit note of ₦10,000 was omitted from the subsidiary ledger, and (ii) a cash receipt of ₦5,000 from a customer was recorded in the control account but not posted to the subsidiary ledger. Determine the corrected closing balance of the sales ledger control account, the corrected total of the subsidiary ledger, and state the amount of the discrepancy that existed before the corrections.

Answer Options

Correct Answer A. Corrected control‑account balance = ₦85,000; Corrected subsidiary total = ₦60,000; Original discrepancy = ₦10,000.
B. Corrected control‑account balance = ₦90,000; Corrected subsidiary total = ₦65,000; Original discrepancy = ₦15,000.
C. Corrected control‑account balance = ₦80,000; Corrected subsidiary total = ₦55,000; Original discrepancy = ₦5,000.
D. Corrected control‑account balance = ₦85,000; Corrected subsidiary total = ₦55,000; Original discrepancy = ₦0.
Correct Answer
A
Correct Option:
Corrected control‑account balance = ₦85,000; Corrected subsidiary total = ₦60,000; Original discrepancy = ₦10,000.

About This Question

This is Neco Model Questions Vol1 2017 Financial Accounting Question 45. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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