At 31 March 20X0, included in the trial balance of BC Limited were the following balances:

The following additional information is given in relation to the y/e 31 March 20X1:

It has been decided to offset the sales ledger balance against the purchase ledger balance.
Required:
i Draw up sales and purchase ledger control accounts for the year ended 31 March 20X1.

ii Why might the balances on the purchase ledger control differ from the list of underlying balances?

Transcribed Image Text:

Purchase ledger control 170,367 (Cr) Sales ledger control 236,703 (Dr)