6.12 The following information for the financial year ended 31 May 1991 has been extracted from the accounting system of George Peace Ltd:

£

Discounts allowed to credit customers 4,170 Cash and cheques received from credit customers 144,700 Discounts received from suppliers 3,910 Cash and cheques paid to suppliers 156,770 Bad debts written off 1,730 Set-offs from customers to suppliers accounts 3,600 Credit sales 167,800 Credit purchases 175,510 Returns in 4,220 Returns out 6,330 Trade debtors as at 1 June 1990 27,490 Trade creditors as at 1 June 1990 21,810 All sales and purchases during the year were made on credit.

(a) Use the above information to prepare a sales ledger control account and a purchases ledger control account for the year ended 31 May 1991.

(14 marks)

(b) Indicate the source of each of the above totals in the accounting system of George Peace Ltd.

(6 marks)

(Total 20 marks)

(AAT Preliminary, June 1991)