The following particulars relating to the year ended 31 March 20X3 have been extracted from the books of Heel and Toe, footwear wholesalers. All sales have been recorded in personal accounts in the sales ledger, and the sales ledger control account is part of the double-entry system in the general ledger.
.................................................................................................................................................. £
Sales ledger control account balance at 1 April 20X2 (debt) ............................... 28.728
Credit sales ....................................................................................... 276.416
Cheques received from credit customers including had debts recovered of £ 168 ..... 249.488
Discounts allowed ................................................................................. 7,384
Discounts received ................................................................................. 5,844
Returns inwards .................................................................................... 3,932
Returns outwards ................................................................................... 2,508
Bad debts written off .............................................................................. 2,372
Provision lot bad debts ............................................................................ 3,600
Cash paid in respect of a credit balance on a sales ledger account ............................. 264
Amounts due from credit customers as shown by soles lodger
transferred to purchases ledger .................................................................. 1.212
Interest charged on credit customer overdue account ............................................ 40
Total of balances in sales ledger on 31 March 20X3 (debit) .............................. 41,828
Required
a. Prepare the sales ledger control account for the year ended 31 March 20X3 using relevant figures selected from the data shown above.
b. Subsequently, the following errors have been discovered:
• The total of the sales day book has been under cast by £2,000.
• An entry of £250 in the returns inward book has been entered on the wrong side of the credit customer's personal account.
• Discount allowed of £100 had been entered correctly in a credit customer's personal account but no entries have been made in the books.
• A cheque for £6,800 from a credit customer has been entered correctly in the cash book but has been posted to the credit customer's personal account as £8,600.
Prepare a statement showing the amended balances on the sales ledger and the sales ledger control account.
c. Discuss the purposes of control accounts?