5.10 LO6 The bookkeeper responsible for maintaining the individual records of creditors relating to purchases prepared a schedule of the balances of individual supplier’s accounts at the end of April. This was drawn up from information in the creditors ledger. The balance was $883,660.

He then passed this over to the accountant who was responsible for keeping the creditors ledger control account, for checking and reconciliation.

The creditors control account was as shown below:

Creditors control account April 30 Purchases returns $5,100 April 1 Balance b/d $825,000 30 Cash 900,000 30 Purchases 925,000 30 Balance c/d 884,900 30 Discount received 35,000 30 Debtors ledger control contra 5,000 1,790,000 1,790,000 April 30 Balance b/d 884,900 In examining the discrepancy, a number of errors were found in both the control account and the individual accounts. You may assume that the totals posted to the control account are correct, other than when listed below:

1 One supplier had been paid $30 from Petty Cash. This had been correctly posted to his personal account, but had been left out of the control account.

2 Goods which had cost $400 had been returned, but this transaction had been omitted from the purchases returns book.

3 Discounts received amounting to $50 and $30 had been posted to the wrong side of the individual creditor accounts.

4 One balance, amounting to $1,000, had been completely omitted from the schedule.

5 A credit balance on one account amounting to $969 had been transposed in the schedule to $699.

6 The credit side of one account had been under calculated by $100.

(a) Prepare a statement starting with the original closing balance on the control account, identifying and correcting the errors in the account, and concluding with an amended closing balance.