Question

Theodora, Priscilla, Alice, Graham & Fred Question 5 The following balances appeared in the ledgers of Major Ltd for the month of October 2018. October 1, 2018 Debit balance in sales ledger Credit balance in sales ledger Debit balance in purchases ledger Credit balances in purchases ledger GH 12,890 1.640 2.180 47,500 The following transaction took place during the month of October Credit sale Cash sales Credit purchases Cash purchases Return inwards Return outwards Discount allowed Discount received Cash received from credit customers Cheques paid to suppliers Cheques received from debtors Cash paid to creditors Provision for doubtful debt Bills payable Bills receivable Refund to credit customers for overpayment Bad debts written off Cheques from customers dishonoured Cash refunded to customers for damaged goods Interest charged on credit customers for overdue debts Credit balance in sales ledger Debit balances in purchase ledger Debit balance in purchase ledger set-off against credit sales balance in sales ledger 87,000 12,000 96,200 22,000 6,460 5,520 9,200 8,500 45,000 57,100 35,690 37,900 20,000 18,900 17,700 10,000 6,000 18.000 9,000 4.100 3,500 2.900 15,000 You are required to prepare: (a) sales ledger control account (b) purchases ledger control account

Answer 1

Ans. :-

• Sales Ledger Control Account :-

Sales Ledger Control A/c
Particulars	Debit Amount		Particulars	Credit Amount
Opening balance	12,890		Opening balance	1,640
Credit Sales	87,000		Sales return (Return inwards)	6,460
Refund for overpayment	10,000		Discounts allowed	9,200
Cheques dishonoured	18,000		Cash received from credit customers	45,000
Cash refunded for damaged goods	9,000		Cheques received from debtors	35,690
Interest charged for overdue debts	4,100		Bad debts written off	6,000
			Set off (against purchase ledger)	15,000
			Balance carried forward	22,000
	140,990			140,990

• Purchase Ledger Control Account :-

Purchase Ledger Control A/c
Particulars	Debit Amount		Particulars	Credit Amount
Opening balance	2,180		Opening balance	47,500
Purchase return (Return Outwards)	5,520		Credit Purchases	96,200
Discounts received	8,500
Bank a/c (Cheques paid to suppliers)	57,100
Cash paid to creditors	37,900
Set off (against sales ledger)	15,000
Balance carried forward	17,500
	143,700			143,700