Neco Model Questions Vol1 2018 Financial Accounting Question 24

Practice objective / multiple choice question 24 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 24 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

The Sales Ledger Control Account opened with a debit balance of \(500,000\). During the year credit sales of \(1,200,000\) were posted and cash receipts from customers amounted to \(950,000\). At year‑end the subsidiary sales ledger shows outstanding balances: Customer A \(80,000\), Customer B \(45,000\) and Customer C \(30,000\). (a) What is the closing balance of the Sales Ledger Control Account? (b) Reconcile this balance with the total of the subsidiary ledger.

Answer Options

Correct Answer A. Closing balance debit 750,000; discrepancy 595,000
B. Closing balance credit 750,000; discrepancy 595,000
C. Closing balance debit 800,000; discrepancy 645,000
D. Closing balance debit 750,000; discrepancy 650,000
Correct Answer
A
Correct Option:
Closing balance debit 750,000; discrepancy 595,000

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 24. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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