Question

QUESTION 2 CREDITORS CONTROL (20 MARKS) The information given below was extracted from the records of Sprit Traders for May 2019. REQUIRED 2.1 (11) Prepare the correct Creditors Control account for May 2019. Balance the account. 2.2 (9) Prepare the correct Creditors List as at 31 May 2019. INFORMATION R128 250 Credit balance in the Creditors control account on 01 May 2019 Transactions during May 2019 (excluding the additional information below) Merchandise purchased on credit 330 300 Cheques issued to creditors in payment of accounts and discounts received 321 075 Merchandise returned to creditors 3 780 7 200 Equipment purchased on account Interest charged by a creditor on overdue account 135 Creditors List as at 31 May 2019 Creditor Credit Debit Labit Amert mes Asse Zola Limited 20 700 Fritz Suppliers 31 590 Asst gat Bally Manufacturers 84 600 Just Enterprises 15 300 Man Wholesalers 1 350 1 350 152 190 Additional information not yet recorded: The debit balance in the account of Man Wholesalers in the Creditors Ledger must be transferred to 1. their account in the Debtors ledger. An account payment to Zola Limited was not recorded in the Cash Payments Journal, R4 050. An invoice received from Bally Manufacturers for goods purchased was correctly entered in the Purchases journal as R3.750 but erroneously posted to their account as R4 560 in the Creditors ledger. A credit note from Fritz Suppliers for merchandise returned was not recorded in the Purchases Returns 2. 3. 4. Journal, R3 150. An electronic funds transfer to Just Enterprises for R9 000 for an account payment was recorded in the Cash Payments Journal but not posted to the Creditors ledger. 5.

Answer 1

creditors control account for may 2019. Particulars TO Bonk Alc (Cheque issued and discount received Amount in Rl Particulars Amour in R 321075 By openning Balance 128250 By meschandise fue 330300 chose By equipment purchase J200 135 By interest 3780 To Perchase return To man whote sale ALC 1350 Celance transferred to Dento Ledger 4050 to 2010 limited. ccash payment) 810 TO Belly manufetues rectification Of Ogs amound fosteos To foitz Suppliers 3150 ccredit note entry pecca To Just enterprises 9000. 192670 To closing bevance. 465885 465885 Total - 391075 +3780 +135074050 +810-43150 +90004122676 =465885 Total = 198250 +330300 +4200+135 2465885

corect creditors List As at 31st may, 2019 coeditor Debit Credit 16650 zola limited Fritz Suppliers 28440 Boly manufactures 83790 Just enterprises 6300 135180 2010 limited - 20700 - 4050 - 16650 fritz Suppliers - 28440 - 31590-BBB 3150 --98440 Bally manufacterses - 84600 - 810 183790 Just Enterprises - 15300-9000 6300 Totou - 16650 +35440 +83790 76300 - 135180