7.7 The balance on J. Alp’s creditors’ account as at 31 December 20X2 was £111,130. A list of the balances on the creditors’ ledger as at that date revealed the following:

£ £

102,040 450 3,000 3,450

£98,590 During your investigations you discover the following:

1. The purchase daybook has been added up incorrectly, understating the total by £700.

2. A purchase of £5,000 from Tun had not been posted to his personal account.

3. The debit balance on Sol’s account was caused by the error of posting a payment to Sol’s account as £940 instead of £490.

4. The debit balance on Lui’s account represents a payment in advance demanded by Lui.
5. Discounts received amounting to £6,910 had been posted to the personal accounts but not to the control account.
6. A bad debt of £650 written off Lee’s personal account in the debtors’ ledger has been posted to the creditors’ control account.
7. An invoice for £8,200 rendered by Dai had been badly typed and Alp’s bookkeeper had read it as £5,200.
8. A contra-entry of £230 between Tol’s accounts in the debtors’ and creditors’ ledgers has been correctly entered in the personal accounts but had not been entered in the control accounts.
Required:

(a) Show the necessary correcting journal entries and other adjustments.

(b) Show the revised control account balance and the adjustments to the list of balances, showing that, after correction, the control account balance and the list of balances are in agreement.

(c) The correct balance on the debtors’ control account is £171,250 (no accounts in the debtors’ ledger have credit balances). What amounts should be shown in the balance sheet for trade debtors and trade creditors?