Reference no: EM132863799
Question - Kathe Wisdom operates a mini-mart. At the end of May 2016 the following information was taken from the company's records:
May 1, 2016:
Purchases Ledger balances b/f- Cr 3,400,000
Sales Ledger balances b/f- Dr 5,200,000
Purchases Ledger balance b/f- Dr 150,000
Sales Ledger balances b/f- Cr 252,000
May 31, 2016:
Cash paid to suppliers 2,450,000
Cheques received from debtors 3,230,000
Dishonored customers cheques 150,000
Sales journal total 3,200,000
Interest on overdue customers' accounts 190,000
Set-off between purchases and sales ledgers 350,000
Bad debts 220,000
Goods returned to suppliers 500,000
Interest on overdue suppliers' accounts 150,000
Cash received from debtors 1,650,000
Cash received in respect of bad debts previously written off 180,000
Discount received 450,000
Cash sales 700,000
Cheques paid to suppliers 2,280,000
Return inwards 420,000
Cash purchases 980,000
Purchases journal total 3,550,000
Discount allowed 240,000
Provision for bad and doubtful debts 350,000
Purchases ledger balance, Cr ?
Sales ledger balance, Cr 106,000
Sales ledger balance, Dr ?
Purchases ledger balance, Dr 69,000
Required -
(a) Prepare Debtors Control Account for the month of May 2016.
(b) Prepare Creditors Control Account for the month of May 2016.
(c) Identify two (2) items from the above list of balances that will not be included in the Control Accounts.
(d) List two (2) purposes served by Control Accounts.