Question

Question 1 (CLO4) The following balances were extracted from the ledgers of Eve Johnson & Friends Lt October 31, 2019 5.000 180,000 270,000 8,320 October 1, 2019: Purchases Ledger balance b/f-Dr Purchases Ledger balances b/f-Cr Sales Ledger balances b/f-Dr Sales Ledger balances b/f-Cr October 31, 2019: Return outwards Discount allowed Cash paid to suppliers Bad debt Credit sales for the month Cheques received from customers Cash sales Refunds to credit customers Discounts received Dishonoured customers cheques Cash purchases Interest on overdue customers accounts Credit purchases for the month Bad debts recovered Refunds to cash customers Interest on overdue suppliers accounts Return inwards Refunds from credit purchases Cash received from debtors Contra entry Purchases ledger debit balance Sales ledger credit balance 12,000 11.200 134,000 17,200 239,200 288,000 23,600 14,000 16,200 14,400 24,000 12,800 147,200 20,000 3,200 6,320 10,000 18.400 34.000 24,800 9,120 12.000 Required: (a) Prepare Purchases Ledger Control Account for the month of October 2019 (b) Prepare Sales Ledger Control Account for the month of October 2019

Answer 1

Answer:

	(CREDITORS)		PUCHASE LEDGER CONTROL ACCOUNT				AMT IN $
PARTICULARS			AMOUNT	PARTICULARS			AMOUNT
1/10/2019	TO BAL. B/F		5000	1/10/2019	BY BAL B/F		180000
	TO RETURN OUTWARD		12000		BY PURCHASE		147200
	TO CASH		134000		BY INTEREST		6320
	TO DISCOUNT RECD.		16200		BY BAL C/F
	TO REFUNDS		18400
31/10/19	TO BAL C/F		147920
		TOTAL	333520				333520
NOTE:	BALANCE OF 147920 COMPRISES THE EFFECT OF DR BALANCE OF 9120 ALSO.
	(DEBTORS)		SALES LEDGER CONTROL ACCOUNT				AMT IN $
PARTICULARS			AMOUNT	PARTICULARS			AMOUNT
1/10/2019	TO BAL. B/F		270000	1/10/2019	BY BAL B/F		8320
	TO SALES		239200		BY DISCOUNT ALLOW		11200
	TO REFUNDS		14000		BY BAD DEBTS		17200
	TO CHEQ DISHONOUR		14400		BY BANK		288000
	TO INT CHARGED		12800		BY RETURN INWARD		10000
					BY CASH		34000
				31/10/19	BY BAL C/D.		181680
		TOTAL	550400				550400
NOTE:	BALANCE OF 181680 COMPRISES THE EFFECT OF CR BALANCE OF 12000 ALSO.
IMP NOTE: CASH SALE, CASH PURCHASE, BAD DEBTS RECOVERED ARE NOT CONCERNED WITH ABOVE.
THESE ARE ACCOUNTED FOR DIRECTLY IN CASH/BANK BOOK. CONTRA ENTRY EFFECTS HAS NOT
BEEN GIVEN ABOVE.