The following information was extracted from the books of Colombo for the year ended 30 April 2004.

Required 

(a) Prepare the Purchase Ledger Control account for the year ended 30 April 2004. The total of the balances extracted from Colombo's purchase ledger amounts to $101 490, which does not agree with the closing balance in the Control account. The following errors were then discovered. 

1. The total of discount received had been overstated by $1500. 

2. A purchase invoice for $3060 had been completely omitted from the books.

3. A credit balance in the purchase ledger account had been understated by $150. 

4. A credit balance of $1275 in the purchase ledger had been set off against a contra entry in the sales ledger, but no entry had been made in either Control account. 

5. A payment of $2175 had been debited to the creditor's account but was omitted from the bank account. 

6. A credit balance of $4815 had been omitted from the list of creditors. 

Required 

(b) 

(i) Extract the necessary information from the above list and draw up an amended Purchase Ledger Control account for the year ended 30 April 2004. 

(ii) Beginning with the given total of $101 490, show the changes to be made in the purchase ledger to reconcile it with the new Control account balance.

Transcribed Image Text:

Purchase ledger balances at 1 May 2003 Credit purchases Credit purchases returns Cheques paid to creditors Cash purchases Discount received on credit purchases Credit balances transferred to sales ledger accounts $ 64 680 1 236 210 18 600 1 118 970 13 410 47 100 7.815