ACCA F3 Past Exam Receivable

The following control account has been prepared by a trainee accountant:

Receivables ledger control account

$ $
Opening Balance 500,000 Cash received from credit customers 70,000
Credit Sales 100,000 Discount allowed to credit customers 5,000
Cash sales 70,000 Interest charged on overdue accounts 6,000
Contras against credit balances in payable ledger 80,000Bad debt written off 90,000
Allowance for receivable 20,000
Closing balance 559,000
Total 750,000Total 750,000

What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?

SUGGESTED SOLUTION

$ $
Opening Balance 500,000 Cash received from credit customers 70,000
Credit Sales 100,000 Discount allowed to credit customers 5,000
Interest charged on overdue accounts 6,000 Contras against credit balances in payable ledger 80,000
Bad debt written off 90,000
Allowance for receivable 20,000
Closing balance 341,000
Total 606,000Total 606,000

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