Ruby Ltd uses both special journals and a general journal as described in this chapter. On 30 June, after all monthly postings had been completed, the Accounts Receivable Control account in the general ledger had a debit balance of $300 000; the Accounts Payable Control account had a credit balance of $67 500. The December transactions recorded in the special journals are summarised below. No entries affecting accounts receivable and accounts payable were recorded in the general journal for December. 

Required

(a) What is the balance of the Accounts Receivable Control account after the monthly postings on 31 December?

(b) What is the balance of the Accounts Payable Control account after the monthly postings on 31 December?

(c) To what account(s) is the column total of $187 725 in the sales journal posted?

(d) To what account(s) is the Accounts Receivable column total of $95 250 in the cash receipts journal posted?

(e) What is the purpose of preparing a schedule of accounts receivable?

Transcribed Image Text:

Sales journal Purchases journal Cash receipts journal Cash payments journal Total sales Total purchases Accounts Receivable column total Accounts Payable column total $187 725 $ 40770 $95 250 $ 35625