The balance of a sales ledger control account agrees with the total of all individual customer balances. What can properly be concluded?
Correct answer: B. Only that the two recorded totals agree arithmetically
- A. No error exists anywhere in the sales ledger
- B. Only that the two recorded totals agree arithmetically
- C. The bank reconciliation is automatically complete
- D. The individual customer accounts are no longer required
Explanation
Agreement confirms that the two recorded totals are arithmetically consistent, but it does not prove that every transaction was recorded correctly. An error omitted from both records could remain undetected.
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About Bank Reconciliation and Control Accounts
Bank reconciliation explains differences between the cash book and bank statement through unpresented cheques, outstanding deposits, bank charges, direct payments, credited amounts and recording errors. Control accounts summarise receivables and payables ledgers, and their balances are reconciled with individual accounts to locate discrepancies.
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34 free Bank Reconciliation and Control Accounts MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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Which book of prime entry normally provides the total of credit sales posted to the sales ledger control account?
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A customer is also a supplier, and the amount receivable from that customer is set off against the amount payable to the same party. What entries are made in the control accounts?
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