FRA skills test - Sales Ledger Control Errors

wonderwife2008

I am going over some points on the phone with my tutor tomorrow that I messed up on my skills test!!!!! Luckily there were not many

I need to revise errors on the sales ledger control account ... but cannot think where to start or the basis of the original question that I messed up

Does anyone have any idea where he might be going with that topic?

Thanks

Claire

crispy

Hello,

Im guessing it could be a question where you had to reconcile a difference between the SLCA Balance and Sales Ledger balance.

Eg. SLCA Balance = £12,000
Total of Individual customer Accounts = £ 11,900

You would then have to use the information you have to balance the two figures. For example, it could be that a discounts received amount was posted to the debtors A/c but not to the SLCA, or there is a figure transposed in the SDB or a Bad Debt not accounted for.

Good Luck :001_smile:

visha

Crispy is correct.

Firstly you need to understand the principle that the total of individual balances in the sales ledger (memorandum a/c's) MUST equal to the balance of SLCA (total outstanding debtors)

How does it work?

The prime entry for both accounts are from the Sales Day Book. ( we will only concentrate on sales invoices for the moment)

The totals at the bottom of Sales day books are posted to Sales a/c, VAT a/c and SLCA (debtors) a/c. (here your debit must equal to your total credits)

But the total on an individual sales invoices are posted individually to each of the debtors a/c in the sales ledger (memorandum a/cs)

On the Sales Day Book the total of individual sales invoices equals to the Balance posted to SLCA in the main ledger.

Therefore, if the individual debtors balances are LISTED and added up from the sales ledger (memorandum a/c) they MUST be equal to the balance in the SLCA.

If there is a difference then there may be an error in the posting of the balances on the SLCA, or error on listing the balances from the sales ledger a/cs.

In your skill's test you will have been given a balance in your SLCA, an extract from sales day book and sales ledger account for individual debtors.

You will need to list the balances of individual debtors, add them up and them compare that with the balance of SLCA. There will be a difference.

Your first task will be to go to the Sales Day book and compare and double check that the correct balances have been posted to the SLCA. If not then there lies your problem/solution.

If the balances are posted correctly to SLCA then you will need to check that individual total sales are posted correctly from the sales day book to the individual sales ledger debtor's accounts.

there may also be a possibility that a credit note has been posted to sales day book as an invoice, but credit note posted correctly to the individual debtor's account.

I hope this helps.