Reference no: EM132950127

At 31 December 2020 the net total of the purchase ledger balances of Marmot & Co. amounted to £17,380, while the balance on the purchase ledger control account was £18,035.

Audit tests revealed the following errors, and when the necessary adjustments had been made the balances were reconciled:

1. Purchase ledger balances had been omitted from the list of balances as follows: Credits £650 Debits £120

2. The purchase returns day book had been undercast by £100.

3. Discounts received of £25 had not been recorded in the control account.

4. A credit balance of £15 in the purchase ledger had been listed as a debit balance.

5. £60 worth of goods returned had not been recorded in the control account.

6. A payment of £90 on 28 December 2020 had been correctly entered in the control account but was posted to the purchase ledger on 3 January 2021.

Required:

Problem 1: Prepare a reconciliation between the purchase ledger control account and the net total of the purchase ledger balances.