Question
2.2 The following Debtors Control account and Debtors list were prepared by the inexperienced bookkeeper of Swansea Traders. A number of errors and omissions were
2.2 The following Debtors Control account and Debtors list were prepared by the inexperienced bookkeeper of Swansea Traders. A number of errors and omissions were discovered after an investigation was done. REQUIRED
Use the appropriate information to prepare the correct Debtors Control account for May 2016. Balance the account. (10)Note: The Debtors List is not required.
00 4
Jun 01
Debtors
Balance b/d 80 388
List as at 31 May 2016
INFORMATION
General ledger
DR DEBTORS CONTROL CR
2016 May 01
31
2016 May 31
Balance Sales
b/d SJ5
114 642 63 000
Bank and discount Sales returns Balance
CRJ5 SRJ5 c/d
93 762 3 492 80 388
177 642
177 642
Debtor
Debit
Credit
A. Hopkins J. Mduli S. Peters J. White M. Brown
6 336
5 040 11 340
57 360
480
80 076
480
1. 2. 3. 4.
5.
6. 7.
The following errors and omissions were discovered after the above were drawn up:
The opening balance in the Debtors control account is R180 more than it should be. The account of S. Peters is overdue. Interest must be charged at 20% p.a. for 2 months. The Debtors column in the Cash Receipts Journal was undercast by R1 800. A return of goods by M. Brown for R414 was erroneously entered in his account as a credit sale and the balance was calculated as such. No entry has been made for a cheque for R5 940 that was returned by the bank marked R/D insufficient funds. The cheque was previously received from debtor L. Pather in settlement of a debt of R5 940. The account must also be written off as L. Pather cannot be traced. Credit sales of R 3 060 to J. Mduli was incorrectly posted to the account of A. Hopkins. A credit note issued to A. Hopkins for R8 940 for goods returned by him was incorrectly posted to his account in the Debtors ledger as R8 580.
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