The following balances were extracted from the ledgers of Eve Johnson & Friends Ltd on October 31,
Question:
The following balances were extracted from the ledgers of Eve Johnson & Friends Ltd on October 31, 2015:
Required:
a. Prepare Purchases Ledger Control Account for the month of October 2015
b.Prepare Sales Ledger Control Account for the month of October 2015.
c.Briefly outline two (2) purposes of Control Accounts.
d. Eve Johnson & Friends Ltd bought on credit $450,000 worth of goods from Jacobs Brothers Ltd during October 2015. After paying off the debt it was discovered that $60,000 worth of the goods received was defective. Outline how such development would be treated in the relevant Control Account for the month of October 2015.
October 1, 2015: | $ |
Purchases Ledger balance b/f- Dr | 25,000 |
Purchases Ledger balances b/f- Cr | 900,000 |
Sales Ledger balances b/f- Dr | 1,350,000 |
Sales Ledger balances b/f- Cr | 41,600 |
October 31, 2015: | |
Return outwards-p | 60,000 |
Discount allowed-s | 56,000 |
Cash paid to suppliers-p | 670,000 |
Bad debt-s | 86,000 |
Credit sales for the month-s | 1,196,000 |
Cheques received from customers-s | 1,440,000 |
Cash sales-iire | 118,000 |
Refunds to credit customers-s | 70,000 |
Discounts received-p | 81,000 |
Dishonoured customers cheques-s | 72,000 |
Cash purchases-iire | 120,000 |
Interest on overdue customers accounts-s | 64,000 |
Credit purchases for the month-p | 736,000 |
Bad debts recovered-irr | 100,000 |
Refunds to cash customers-irr | 16,000 |
Interest on overdue suppliers accounts-p | 31,600 |
Return inwards-s | 50,000 |
Refunds from credit purchases-p | 92,000 |
Cash received from debtors-s | 170,000 |
Contra entry-both | 124,000 |
Purchases ledger debit balance | 45,600 |
Sales ledger credit balance | 60,000 |
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone