27.10A The trial balance of Happy Bookkeeper Ltd, as produced by its bookkeeper, includes the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
27.10A The trial balance of Happy Bookkeeper Ltd, as produced by its bookkeeper, includes the following items: Sales ledger control account Purchases ledger control account Suspense account (debit balance) £110,172 £78,266 £2,315 You have been given the following information: (1) The sales ledger debit balances total £111,111 and the credit balances total £1,234. (ii) The purchases ledger credit balances total £77,777 and the debit balances total £1,111. (iii) The sales ledger includes a debit balance of £700 for business X, and the purchases ledger includes a credit balance of £800 relating to the same business X. Only the net amount will eventually be paid. (iv) Included in the credit balance on the sales ledger is a balance of £600 in the name of H. Smith. This arose because a sales invoice for £600 had earlier been posted in error from the sales day book to the debit of the account of M. Smith in the purchases ledger. (v) An allowance of £300 against some damaged goods had been omitted from the appropriate account in the sales ledger. This allowance had been included in the control account. (vi) An invoice for £456 had been entered in the purchases day book as £654. (vii) A cash receipt from a credit customer for £345 had been entered in the cash book as £245. (viii) The purchases day book had been overcast by £1,000. (ix) The bank balance of £1,200 had been included in the trial balance, in error, as an overdraft. (x) The bookkeeper had been instructed to write off £500 from customer Y's account as a bad debt, and to reduce the provision for doubtful debts by £700. By mistake, however, he had written off £700 from customer Y's account and increased the allowance for doubtful debts by £500. (xi) The debit balance on the insurance account in the nominal ledger of £3,456 had been included in the trial balance as £3,546. Required: Record corrections in the control and suspense accounts. Attempt to reconcile the sales ledger control account with the sales ledger balances, and the purchases ledger control account with the purchases ledger balances. What further action do you recommend? 27.10A The trial balance of Happy Bookkeeper Ltd, as produced by its bookkeeper, includes the following items: Sales ledger control account Purchases ledger control account Suspense account (debit balance) £110,172 £78,266 £2,315 You have been given the following information: (1) The sales ledger debit balances total £111,111 and the credit balances total £1,234. (ii) The purchases ledger credit balances total £77,777 and the debit balances total £1,111. (iii) The sales ledger includes a debit balance of £700 for business X, and the purchases ledger includes a credit balance of £800 relating to the same business X. Only the net amount will eventually be paid. (iv) Included in the credit balance on the sales ledger is a balance of £600 in the name of H. Smith. This arose because a sales invoice for £600 had earlier been posted in error from the sales day book to the debit of the account of M. Smith in the purchases ledger. (v) An allowance of £300 against some damaged goods had been omitted from the appropriate account in the sales ledger. This allowance had been included in the control account. (vi) An invoice for £456 had been entered in the purchases day book as £654. (vii) A cash receipt from a credit customer for £345 had been entered in the cash book as £245. (viii) The purchases day book had been overcast by £1,000. (ix) The bank balance of £1,200 had been included in the trial balance, in error, as an overdraft. (x) The bookkeeper had been instructed to write off £500 from customer Y's account as a bad debt, and to reduce the provision for doubtful debts by £700. By mistake, however, he had written off £700 from customer Y's account and increased the allowance for doubtful debts by £500. (xi) The debit balance on the insurance account in the nominal ledger of £3,456 had been included in the trial balance as £3,546. Required: Record corrections in the control and suspense accounts. Attempt to reconcile the sales ledger control account with the sales ledger balances, and the purchases ledger control account with the purchases ledger balances. What further action do you recommend?
Expert Answer:
Answer rating: 100% (QA)
ANSWER Sales ledger control account Corrections 600 for H Smith 300 for damaged goods Total correcti... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
Students also viewed these accounting questions
-
You have been given the following information for RPE Consulting for the year ended July 31, 2014. Required 1. Prepare the company's income statement, statement of changes in equity, and balance...
-
You have been given the following information about ALG Co. Ltd., which uses a standard cost system in accounting for its one product: 1. In the month of November 2016, 5,000 units were produced. 2....
-
You have been given the following information about ALG Co. Ltd., which uses a standard cost system in accounting for its one product: 1. In the month of November 2012, 5,000 units were produced. 2....
-
A particular automatic sprinkler system has two different types of activation devices for each sprinkler head. One type has a reliability of 0.9; that is, the probability that it will activate the...
-
Describe the two steps to data storage design.
-
Find the measure of x in each figure. 1. 2.
-
In 1906, the statistician Karl Pearson measured the heights of 1078 pairs of fathers and sons. The following table presents a sample of 16 pairs, with height measured in inches, simulated from the...
-
Analyzing and Interpreting Return on Assets Tiffany & Co. is one of the worlds premier jewelers and a designer of other fine gifts and housewares. Presented here are selected income statement and...
-
You have completed the Learning Materials on Economics (Module 11) You have read this week's Course Reading: Bittman, M. (2014, Jul. 15). "The true cost of a burger." New York Times. Deliverables...
-
Use the data for the demand for chicken given in Exercise 7.19. Suppose you are told that the true demand function is ln Y t = 1 + 2 ln X 2t + 3 ln X 3t + 6 ln X 6t + u t (1) but you think...
-
More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat: Standard...
-
During 2017, Raymond, a single individual, earned a salary of $196,000. He also had the following items of investment income: $40,000 net short-term capital gain on sale of stock, $7,000 dividend...
-
Imagine that you are the new director of a major international lending institution that gets its funding from member countries. You are evaluating your organizations lending policies and priorities....
-
What are the main characteristics of the political system known as communism?
-
Lenora and Sam are married and file a joint tax return. Lenora has $180,000 in salary and Sam has $190,000 in self-employment income in 2017. How much must they pay for their additional Medicare...
-
How has Russia managed its economic transition from central planning?
-
C III = Question 19 Not yet answered Marked out of 1.00 P Flag question Question 20 Not yet answered LSUS noodle Marked out of 1.00 P Flag question 78F Partly sunny T...
-
Make an argument that Williams had a right to delay the closing until after August 1.
-
Describe the sources of the rules and regulations that govern the content and format of company final financial statements in the UK.
-
Why are financial statements prepared by companies?
-
Bugs Bunny, a wholesale dealer in ready-made menswear, achieves a gross profit ratio of 50 per cent. The statement of financial position of the business as at 30 June 20X8 was as follows: Since this...
-
A hospital reported the following statistics for the past year: births, 1,702; deliveries, 1,708; C-sections, 360; and obstetrical discharges, 1,827. The C-section rate for that year IS a. 0.21% b....
-
The consultation rate (including newborns) is _ _ . a. 0.03% b. 0.30% c. 3.09% d. 30.99%
-
The hospital-acquired infection rate (including newborns) is __ . a. 0.03% b. 0.30% c. 3.00% d. 30.00%
Study smarter with the SolutionInn App