The purchase ledger control account of a business for the year to 31 March 2000 has been drawn up as follows:

A list of balances extracted from the purchase ledger on 31 March 2000 shows total creditors of £7,418.49. On investigation, the following errors were discovered:

(a) Two glaringly obvious mistakes had been made when the control account was drawn up.

(b) A purchase invoice for £201.23 had been recorded correctly in the purchases daybook but had then been debited to the supplier's account in the purchase ledger.

(c) One supplier had refused to accept payment by cheque. Since the amount owing to this supplier was only £20, the payment was made out of petty cash. The payment was debited to the supplier's account in the purchase ledger but was not reflected in the control account.

(d) The purchases returns daybook had been undercast by £110.

(e) A £701.27 credit note received from a supplier had been recorded in the purchases daybook as a purchase invoice and had been credited to the supplier's account in the purchase ledger.

(f) A £10 discount received from a supplier had been posted to the purchase ledger as £100.
(g) One of the accounts in the purchase ledger has a debit balance of £124.87. This had been included on the list of ledger balances as a £124.78 credit balance.
(h) One of the sales ledger contras, amounting to £354.89, had been entered on the wrong side of the supplier's account in the purchase ledger. This contra is included in the total contras figure shown in the control account.
Required:
Draw up an amended purchase ledger control account and reconcile the balance on this account with the total of the list of balances extracted from the purchase ledger.

Transcribed Image Text:

Purchases returns Cheques sent to suppliers Discounts received Balance c/d Purchase ledger control account 2,438.65 Balance b/d 6,769.13 52,117.94 Purchases 59,432.77 3,443.80 Contras to the sales ledger 1,119.99 8,321.50 67,321.89 67,321.89 Balance b/d 8,321.50