Question

2.2 The following Debtors Control account and Debtors list were prepared by the inexperienced bookkeeper of Swansea Traders. A number of errors and omissions were discovered after an investigation was done.
REQUIRED

Use the appropriate information to prepare the correct Debtors Control account for
May 2016. Balance the account. (10)Note: The Debtors List is not required.

00 4

Jun 01

Debtors

Balance b/d 80 388

List as at 31 May 2016

INFORMATION

General ledger

DR DEBTORS CONTROL CR

2016 May 01

31

2016 May 31

Balance Sales

b/d SJ5

114 642 63 000

Bank and discount Sales returns Balance

CRJ5 SRJ5 c/d

93 762 3 492 80 388

177 642

177 642

Debtor

Debit

Credit

A. Hopkins J. Mduli
S. Peters J. White M. Brown

6 336

5 040 11 340

57 360

480

80 076

480

1. 2. 3. 4.

5.

6. 7.

The following errors and omissions were discovered after the above were drawn up:

The opening balance in the Debtors control account is R180 more than it should be.
The account of S. Peters is overdue. Interest must be charged at 20% p.a. for 2 months.
The Debtors column in the Cash Receipts Journal was undercast by R1 800.
A return of goods by M. Brown for R414 was erroneously entered in his account as a credit sale and the balance was calculated as such.
No entry has been made for a cheque for R5 940 that was returned by the bank marked “R/D – insufficient funds”. The cheque was previously received from debtor L. Pather in settlement of a debt of R5 940. The account must also be written off as L. Pather cannot be traced.
Credit sales of R 3 060 to J. Mduli was incorrectly posted to the account of A. Hopkins.
A credit note issued to A. Hopkins for R8 940 for goods returned by him was incorrectly posted to his account in the Debtors ledger as R8 580.

Answer 1

Sol:-

Debtors Control Account
Date	Particulars	Amount	Date	Particulars	Amount
1/5/2016	Balance B/d	114,642	1-May	Balance B/d	180
	Credit Sales	63,000	31-May	S.Peter	11,340
				Interest Charged	378	(11,340 x 20% x 2/12)
				Bank & Discount	95562
				L.Pather	5940
				Sales return	3852
				Balance C/d	60390
	Total	177642		Total	177642