The sales ledger records of a company reveal the following information for the month of May 19_5:

(a) Prepare control accounts for the four ledger sections for the month ended 31 May 19_5.

(b) The total of the individual ledger balances in the K-N section of the ledger at 31 May 19_S was £11 820. Give two possible reasons why this figure differs from that disclosed by the control account for this section of the ledger.

(c) A customer, P. Parker, supplies goods to the company, and has a balance in the purchases ledger totalling £400. His sales ledger balance at 31 May 19_S5 is £600. What would be the effect on the two balances if the company ‘set off’ one balance against the other?

(d) What advantages, if any, are to be gained from splitting the sales ledger control accounts into alphabetical sections?

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A-J K-N O-S T-Z 12 903 14 520 8 300 14 600 - 194 18 470 19 300 150 6.400 7 100 9 652 21 500 7 200 18 400 - 1 306 - 175 Opening Debit balances Opening Credit balances Sales invoice Cheques received Sales returns Bad debts written off Cheques dishonoured Closing Credit balances 500 150 200 200