11! 2 of 2 a or Magnificent Ltd. - $ Balances on customers' accounts, June 1:...

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11! 2 of 2 a or Magnificent Ltd. - $ Balances on customers' accounts, June 1: Dr. + 83,160 1,200 Cr. Balances on suppliers' accounts, June 1: 54,040 Sales (including cash sales of $20,000) 113,900 Credit purchases 52,760 Set-off between customers' and suppliers' accounts 1,500 Cash purchases 13,000 Payment to credit suppliers 50,520 Discounts received 1,180 Provision for doubtful debts (June 30) 1,900 Returns to credit suppliers 1,240 Interest on overdue receiveables 90 Returns from credit customers 2,440 Cash and cheques received from credit customers (in full settlement of balances amounting to $83,300) 82,000 Bad debts written off 900 Customer's cheque dishonoured 250 Debit balances on suppliers' accounts, June 30 460 Credit balances on customers' accounts, June 30 240 a) Prepare the following: i. The sales ledger control account ii. The purchases ledger control account [10 marks] [6 marks] b) State TWO reasons why a firm would maintain control accounts [2 marks] 11! 2 of 2 a or Magnificent Ltd. - $ Balances on customers' accounts, June 1: Dr. + 83,160 1,200 Cr. Balances on suppliers' accounts, June 1: 54,040 Sales (including cash sales of $20,000) 113,900 Credit purchases 52,760 Set-off between customers' and suppliers' accounts 1,500 Cash purchases 13,000 Payment to credit suppliers 50,520 Discounts received 1,180 Provision for doubtful debts (June 30) 1,900 Returns to credit suppliers 1,240 Interest on overdue receiveables 90 Returns from credit customers 2,440 Cash and cheques received from credit customers (in full settlement of balances amounting to $83,300) 82,000 Bad debts written off 900 Customer's cheque dishonoured 250 Debit balances on suppliers' accounts, June 30 460 Credit balances on customers' accounts, June 30 240 a) Prepare the following: i. The sales ledger control account ii. The purchases ledger control account [10 marks] [6 marks] b) State TWO reasons why a firm would maintain control accounts [2 marks]