I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

not in the memorandum ledger, or 

vice versa. This requires an entry in the ledger that has been missed out which means a double 

posting if the control account has to be corrected, and a single posting if it is the individual's 

balance in the memorandum ledger that is at fault. 

(d) 

The sum of balances extracted from the memorandum ledger may be incorrectly extracted or 

miscast. This would involve simply correcting the total of the balances. 

4.3 Example: agreeing control account balances with the receivables and 

payables ledgers 

Reconciling the control account balance with the sum of the balances extracted from the (memorandum) 

receivables ledger or payables ledger should be done in two stages. 

(a) 

Correct the total of the balances extracted from the memorandum ledger. (The errors must be 

located first, of course.) 

 

$ 

$ 

Receivables ledger total 

 

 

Original total extracted 

 

  15,320 

Add difference arising from transposition error ($95 written as $59) 

 

        36 

 

 

  15,356 

 

 

 

Less: credit balance of $60 extracted as a debit balance ($60 × 2) 

 

120 

 

 

overcast of list of balances 

 

  90 

 

 

 

      210 

 

 

 15,146 

(b) 

Bring down the balance before adjustments on the control account, and adjust or post the account 

with correcting entries. 

  

RECEIVABLES 

CONTROL 

ACCOUNT 

 

$ 

 

$ 

Balance before adjustments 

 

15,091 

 

Petty cash: posting omitted 

        

10 

 

 

 

Returns inwards: individual 

 

 

 

   

posting omitted from Control 

 

 

 

   

Account 

        

35 

 

 

Balance c/d (now in   

   agreement with the corrected 

 

Undercast of total invoices issued 

 

   total of individual balances 

 

  

in sales day book 

 

     100     in (a)) 

 

15,146 

 

 

15,191   

 

15,191 

Balance b/d 

  

15,146   

 

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CHAPTER 14  

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  CONTROL ACCOUNTS