20 Question 3 (Marks:30) The following information was taken from the books of Big Boy Traders. Most of the sales take place on credit. Debtors are given credit terms of 30 days. The business does not expect to award any settlement discounts. All settlement discounts are therefore incidental in nature. Additional information: 1. 2. 3. . The incomplete Debtors Control account for the month of March 2019 has been provided to you below. You have also been provided with a Debtors list. This list reflects all amounts owing by the debtors at 31 March 2019. The following errors/omissions were noted: The total of the Debtors Journal was over-cast by R 150. A return of goods by D. Dagwood for R 870 including VAT was correctly recorded in the journal but posted to the account of E. Egghead. An invoice issued to D. Dagwood for R 4 200 has been posted to the wrong side of his personal account. No entry has been made for a cheque for R1 500 which was returned by the bank due to insufficient funds. The cheque was originally received from A. Apples in settlement of an account for R1 750. A credit note issued to A. Apples for R 540 has been incorrectly entered in her personal account as R 450. Goods sold on credit to E. Egghead for R1870 including VAT have been incorrectly entered in the Debtors Journal as a sale to D. Dagwood and posted as such . General Ledger of Big Boy Traders Statement of financial position accounts section Dr Cr Date Details Debtors Control Fol. Amount Date Details b/d 10 000 2019 Bank Fol. Amount 2019 Balance 20 000 March March 1 31 Sales and 35 000 Sales and VAT 450 VAT Sales 2 400 Bank (R/D) 430 returns and VAT Interest 20 Credit Losses 250 Income and VAT Debtors List as at 31 March 2019 Debtor Pre-adjusted Balance(R) A. Apples 5 400 D. Dagwood 8 600 E. Egghead (690)CH F. Fudge 2 200 (19) Required: 0.3.1 Prepare a corrected Debtors Control account using the information provided above. (Note: The opening balance of R10 000 is incorrect.) 0.3.2 Prepare a corrected debtors list. (Show all workings as marks will be allocated.) (11) 120 (Marks: 30) Question 3 Q.3. DR 1 Date (19) CR DEBTORS CONTROL BS Details Fol. Amount Date Details Fol. Amount Page 10 of The Independent Institute of Education (Pty) Ltd 2020 20 2030 Q.3. (11) Debtor Workings Post-Adjusted Balance 2 Pre-adjusted Balance 5 400 A. Apples D. Dagwood 8 600 E. Egghead (690) F. Fudge 2 200 Total The Independent in ute of Education IPL 2020