2. Margaret maintains sales and purchase ledger (i.e. debtors and creditors) control accounts. At 31 March 2021 the balances on the control accounts were calculated as being 131,450 and 85,465 respectively, while the total of individual balances extracted from the sales and purchase ledgers were 130,594 and 87,792 respectively. Further investigation reveals the following: (a) The total of 29,450 for sales in the sales daybook had been posted as 29,540. (b) The total of the purchases daybook for the month had been undercast by 80. (c) The debit balance of 128 on an individual debtor's account had been listed as a credit balance. (d) Discounts received of 2,000 have been entered correctly in the control account but no entry was made in the purchase ledger. (e) Discounts allowed totalling 185 had been entered on the wrong side of the control account. (f) A credit balance of 95 in the purchase ledger had been set off against the same person's balance in the sales ledger. This was correctly adjusted in the sales ledger control account but no entry had been made in the purchase ledger control account. (g) The total on the debit side of a debtor's account had been overcast by 100. (h) An irrecoverable debt of 240 had been correctly written off in the individual debtor's account but no entry had been made in the control account. (0) Returns outward of 180 have been entered on the wrong side of the personal account concerned. (i) Cash receipts from debtors of 750 and cash payments to creditors of 450 had not been recorded anywhere in Margaret's books. (k) The total of purchases for the month had been entered correctly as 653 in the control account but had been posted to the purchase ledger as 635. REQUIRED i. Using your own words, briefly outline the advantages of using control accounts. Your explanation can be handwritten OR typed (approximately 110 words). (4 marks) ii. iii. Prepare a statement showing the reconciled balance on the sales ledger and the sales ledger (debtors) control account. (8 marks) Prepare a statement showing the reconciled balance on the purchase ledger and the purchase ledger (creditors) control account. (8 marks) Along with control accounts, bank reconciliations are a method by which businesses exercise internal control. Using your own words, briefly outline the purpose of bank reconciliations. Your explanation can be handwritten OR typed (approximately 130 words). (5 marks) (Total 25 marks) iv