An amount of R95 in the debtors column in the CRJ wasn't posted to the debtors personal account. What does this mean ,what happened to the debt of the debtor?

This means that the debtor's personal account was not updated with the R95 debt that was recorded in the CRJ. As a result, the debtor's total debt is understated by R95 in the personal account. This error could lead to inaccurate financial reporting and may result in the debtor not being reminded or required to pay the full amount owed. It is important to rectify this error by posting the R95 debt to the debtor's personal account to ensure accurate record-keeping and proper management of the debtor's outstanding balance.

Meaning of the error:

It means that a transaction where a debtor owed R95 was recorded in the Cash Receipts Journal (CRJ) but was not subsequently posted to the debtor's individual account in the general ledger.

Consequences for the debtor's debt:

As a result of this error, the debtor's debt balance remains understated by R95 in the general ledger. This means that the company's records do not accurately reflect the amount owed by the debtor.

Possible reasons for the error:

- Clerical mistake during the posting process
- Software glitch or data entry error
- Intentional manipulation of the records

Impact on financial statements:

If this error is not corrected, it can lead to incorrect financial statements being produced. Specifically, it will affect the following:

- Balance sheet: The accounts receivable balance will be understated.
- Income statement: Revenue from the debtor may be understated if the sale that created the debt was already recorded.

Corrective actions:

To correct this error, the R95 amount needs to be manually posted to the debtor's personal account in the general ledger. Additionally, the CRJ should be updated to indicate that the posting has occurred.

Regular reconciliation of the debtors' personal accounts with the CRJ can help prevent and detect such errors in the future.