Balances and transactions affecting a company’s control accounts for the months of May 19X8 are listed below:

(a) Explain the purposes for which control accounts are prepared.

(b) Post the sales ledger and purchases ledger control accounts for the month of May 19X2 and derive the respective debit and credit closing balances on 31 May 19X8.

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Balances at 1 May 19X8: Sales ledger Purchases ledger Transactions during May 19X8: 3 9,123 (debit) 211 (credit) 4,490 (credit) 88 (debit) Purchases on credit 18,135 Allowances from suppliers 629 Receipts from customers by cheque 27,370 Sales on credit 36,755 Discounts received 1,105 Payments to creditors by cheque 15,413 Contra settlements Allowances to customers 3,046 1,720 Bills of exchange receivable 6,506 Customers' cheques dishonoured 489 Cash receipts from credit customers 4,201 Refunds to customers for overpayment of accounts 53 Discounts allowed 732 Balances at 31 May 19X8: Sales ledger Purchases ledger 136 (credit) 67 (debit)