All 25 Control Accounts questions
More in Control Accounts
How is refund to a customer shown in the sales ledger control account? Which errors affect the control account and which affect the list of balances? How is a contra/set-off recorded in the control accounts? How do you prepare a sales ledger control account from incomplete information? How do you prepare a purchases ledger control account to find missing credit purchases? How does an omitted discount received affect the PLCA reconciliation? How does a contra entry affect both control accounts and the reconciliations?
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How would an overstatement of the sales day book affect the control account reconciliation?

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Answer

Overcasting the sales day book overstates the total posted to the debit of the sales ledger control account, so the control account balance exceeds the true total of the debtors list. On reconciliation, the control account is reduced (credited) by the overcast amount to agree with the correctly-posted list of balances.
SDB overcast by 100 -> SLCA overstated by 100.
Correction: reduce the control account by 100.
Real-world example A 100 overcast in the sales day book makes the control account 100 higher than the debtors list until corrected.

Common follow-ups: Does this affect the list or the control account? | How is it corrected?

Correcting Errors Books of Prime Entry Control Accounts
All 25 Control Accounts questions