Question

SECTION B Question 1 The following details were obtained from the accounting records of S GLOW for January 2011 22 556 37 452 35 036 860 400 160 Balances in the debtors' ledger (1 January 2011) Balances in the creditors ledger (1. lanuary 20111 Receipts issued to debtors Cheques received from debtors, returned by the bank marked "R/D" Credit losses Cash received from G McDermott (his account was already closed and debt written off) Credit sales Credit purchases Cheques issued to creditors Returns on purchase Settlement discount granted to debtors Returns on sales Interested charged on overdue debtors' accounts Cash purchase Interest collected by creditors 65 636 59 724 25 724 400 1 804 110 60 17 544 Additional information Credit sales of R48 were incorrectly posted to B Ball's account as R84. • An invoice of R40 for goods sold was not recorded in the sales journal. Required: Prepared the following property balanced/closed off accounts in the general ledger of S GLOW for January 2011 1.1 Debtors control account (10) 1.2 Creditors control account

Answer 1

To Balance B/d To Dishonoured Cheques To credit sales (65636-84+48+40) To interest charged on overdue debtors account Debtors Control Account 22556 By receipts 860 By credit losses 65640 By discount granted 60 By Sales Return By Balance C/d 89116 Total 35036 400 1804 110 51766 (22556+860+65640+60-35036-400-1804-110) 89116 Total Note; Bad Debts recovered will not be shown in Debtors control account.Journal entry passed for bad debts recovered will be 44 46 160 47 Cash Bad Debts Recovered 160 To Cheques issued to Creditors To Purchase Returns To Balance C/d (97512-25724-400) Total Creditors Control Account 25724 By Balance B/d 400 By Credit Purhases 71388 By interest collected 97512 Total 37452 59724 336 97512 Note; Cash Purchases will not be shown in Creditors Control Account.