The following particulars relating to the year ended 31 March 20X9 have been extracted from the books of Heel and Toe, footwear wholesalers. All sales have been recorded in personal accounts in the sales ledger, and the sales ledger control account is part of the double-entry system in the general ledger.

Required
a. Prepare the sales ledger control account for the year ended 31 March 20X9 using relevant figures selected from the data shown above.
b. Subsequently, the following errors have been discovered:
• The total of the sales day book has been undercast by £2,000.
• An entry of £250 in the returns inward book has been entered on the wrong side of the credit customer’s personal account.
• Discount allowed of £100 had been entered correctly in a credit customer’s personal account but no entries have been made in the books.
• A cheque for £6,800 from a credit customer has been entered correctly in the cash book but has been posted to the credit customer’s personal account as £8,600.
Prepare a statement showing the amended balances on the sales ledger and the sales ledger control account.
c. Discuss the purposes of control accounts.

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Sales ledger control account balance at 1 April 20X8 (debit) Credit sales Payments received from credit customers including irrecoverable debts recovered of £168 Discounts allowed Discounts received Returns inwards Returns outwards Irrecoverable debts written off Allowance for irrecoverable debts Cash paid in respect of a credit balance on a sales ledger account Amounts due from credit customers as shown by sales ledger transferred to purchases ledger Interest charged on credit customer overdue account Total of balances in sales ledger on 31 March 20X9 (debit) £ 28,728 276,416 249,488 7,384 5,844 3,932 2,508 2,372 3,600 264 1,212 40 41,828