Sports Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have a debtors
Question:
Sports Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have a debtors control account in the general ledger. The balance of the debtor's control account on 1 May 2021 is R169 200. The following information was provided for the month ending 31 May 2021:
- Journals provided the following totals for relevant transactions:
For the month ended 31 May 2021: | R |
Sales journal: Debtors column | 762 000 |
Sales returns journal | 6 300 |
Cash receipts journal: Debtors column | 586 800 |
General Journal: Interest charged on overdue debtors’ accounts | 2 100 |
General Journal: Debtors' balances written off as irrecoverable | 2 700 |
- The debtors ledger clerk submitted the following :
List of debtors balances as at 31 May 2021 – debit balances | R |
C Gale | 31 500 |
H Bolt | 132 300 |
G Hunt | 182 700 |
I Khune | 18 900 |
R Nadal | 9 000 |
Additional information to be taken into account (not included in the above):
- No entry has been made for a credit sale of goods to C Gale for R 5 400.
- R Nadal’s account must be written off as irrecoverable.
- G Hunt must be charged R1 827 interest on his overdue account.
- A credit note issued to I Khune for goods returned was erroneously entered in the account of C Gale in the debtors’ ledger.
- The sales returns journal was undercast by R900.
- A receipt issued to H Bolt for a payment on account of R37 800 was recorded in the cash receipts journal but was not posted to his account in the debtors’ ledger.
Required:
Use the above information provided to prepare the following:
- The correct Debtors Control Account is properly balanced for May 2021.
- Reconciliation of the debtor's list with the debtor's control account for the month ended 31 May 2021.
College Algebra
ISBN: 978-0134697024
12th edition
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels