Subsidiary Sales Ledgers

blahnik17
blahnik17 Registered Posts: 3 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Hello, I am currently revising for my FRA Sim but I've become stuck on the above. When you encounter a difference between the above and the sales ledger account, due to a transposition error on the subsidiary sales ledger, do you just correct the wrong figure and re cast or must you post a journal? If you must post a journal, what account would the debit go to?

Thank you

Comments

  • visha
    visha Registered Posts: 218 Dedicated contributor 🦉
    When ever there is a difference between SLCA and the total of the balances on a list from Sales Ledger (Memorandum a/c):-

    Establish where the error is!

    If it is in SLCA then the main ledgers are affected. You MUST write journals to correct the errors. The probability of one of the entry in the suspense a/c is very high.

    If it is not in SLCA then it must be in the Memo. a/cs. Memo a/cs are not part of the double entry and therefore you do not need to write journals and just alter the individual sales ledger a/c.

    In transposition error the difference is always divisable by 9

    If the transposition error is in the sales ledger then just correct you’re a/c there will be no double enter and no journals. It will be a single entry correction in the sales ledger.


    The above principle applies to PLCA as well.

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