QUESTION3 CREDITORS RECONCILIATION (20)

The information given below was extracted from the records of Zebro Traders for May 2017.

REQUIRED

3.1 Prepare the correct Creditors Control account for May 2017. Balance the account. (11)

3.2 Prepare the corrected Creditors List as at 31 May 2017. (9)

INFORMATION

Credit balance in the Creditors control account on 01 May 2017	R256 500
Transactions for May 2017 (excluding the additional information below):	R
Merchandise purchased on credit	660 600
Merchandise purchased by cheque	446 400
Cheques issued to creditors in payment of accounts and discounts received	642 150
Merchandise returned to creditors	7 560
Stationery purchased on account	14 400
Interest charged by a creditor on an overdue account	270

CREDITORS LIST AS AT 31 MAY 2017
Creditor	Creditor	Creditor
Union Limited Voltex Suppliers Tropical Manufacturers Southgate Enterprises Proworx Wholesalers	2 700	41 400 63 180 169 200 30 600
	2 700	304 380

Additional information not yet recorded:

1. The balance in the account of Proworx Wholesalers must be transferred to their account in the Debtors ledger.

2. A credit note received from Union Limited for merchandise returned was not recorded in the Purchases Returns Journal, R8 100.

3. An invoice received from Tropical Manufacturers for goods purchased was correctly entered in the Purchases journal as R7 500 but erroneously posted to their account as R9 120 in the Creditors ledger.

4. An electronic funds transfer to Voltex Suppliers in part settlement of account was not recorded in the Cash Payments Journal, R6 300.

5. A cheque to Southgate Enterprises for R9 000 was correctly recorded in the Cash Payments Journal but treated as a purchase in the suppliers account in the Creditors ledger.