The sales ledger control account balance of ‘It shall be well Ltd’ was found through an internal audit to be one-half of the sum of the individual debtors balances from the sales ledger. During the audit test, the following were revealed: a. A credit balance of GHC 763 from the sales ledger was not included in the summed sales ledger debit balances of GHC 18,864 for the period ended.
b. An invoice of GHC 7, 667 was treated as a receipt from a customer in the control account.
c. The sales ledger included a debit balance of GHC 307 for B. ED MGT Ltd and the purchase ledger includes a credit balance of GHC407 relating to the same business. It was agreed that only the net amount should be settled.
d. The company keeps a combined account for discount allowed and discount received which at the end of the period revealed a debit balance of GHC 1,255. An investigation revealed that, the discount received for the period was GHC790. The only entry relating to the discount was the entries in the combined discount account
e. An allowance of GHC 700 against damaged goods had been omitted from the sales ledger. This was however mistakenly treated in the total debtors ledger account as credit sales.
f. A debit note of GHC 770 issued to a customer for undercharged goods was treated as a debit note received from the customer in the books.
g. The sales ledger control account balance at the beginning of the period was brought down as GHC 5,509 instead of GHC 5,590
h. The book keeper has been instructed to write off GHC 1,550 as bad debt from a customer’s account and reduce the provision for doubtful debts by GHC 1,650. By mistake however, he had written off GHC 1,650 as bad debt in the books and reduce the provision for doubtful debts by GHC 1,550
i. An invoice of GHC5,155 was recorded in the sales day book as GHC 1, 555
j. A cheque refund of GHC 500 to a customer was dishonoured. This was not recorded in the control account.
k. Cheque receipt from a customer for GHC 677 was treated as a sales invoice at an amount of GHC 667 in the control account.
You are required to record the above information in the sales ledger control account and attempt to reconcile the sales ledger control account with the sales ledger balances.