QUESTION TWO

$($a$)$ The following information has been extracted from the books of Mutero Traders

Limited for the month of April $2019.$

Balance as at $1^{st}$ April $2019$:

Sales ledger

Debit balances

Purchases ledger

Credit balances

$184,000$

Transaction during the month:

Sales on credit

Purchases on credit

Returns in$-$wards

Returns out$-$wards

Cheques received from trade debtors

Cheques paid to trade creditors

Cash paid to trade creditors

Bad debts written$-$off

Discounts allowed to trade debtors

Discounts received from traders creditors

Credit sales offset against credit purchases

Credit purchase of a motor vehicle posted in the purchases ledger

Dishonored cheques from trade debtors

Cash received to replace dishonored cheques from trade debtors

An invoice to trade debts of sh$.174,000$ posted as

Balances as at $30$ April $2018$

Sales ledger credit balances

$123,000$

Purchases ledger debit balances

$177,000$

Required

a$)$ The sales ledger control account as at ${30}^{th}$ April $2019$

$(5$ Marks$)$

b$)$ purchases ledger control accounts for the month ended ${30}^{th}$ April $2018$

$(5$ Marks$)$

c$)$ Explain four benefits of maintaining control accounts.

$(4$ Marks$)$