a$)$ Discuss any three reasons why control accounts are necessary $(6$ marks$)$

b$)$ The following trial balance of LX Holdings was prepared incorrectly by a

bookkeeper.

LX

Trial Balance as at $31/3/2015$

Dr $($Shs$)$

Cash

Bank overdraft

Discounts allowed

Purchases

Sales

Furniture and fittings

Motor vehicles

Capital

Drawings

Stock $31/3/2014$

Returns inwards

Returns outwards

Discounts received

Advertising

Stationery

Debtors

Creditors

$7,000$

$12,000$

$102,000$

$86,000$

$50,000$

$5,000$

$4,000$

$11,000$

$7,000$

$20,000$

$304,000$

Cr $($Shs$)$

$8,000$

$190,000$

$40,000$

$14,000$

$6,000$

$6,000$

$40,000$

$304,000$

Required:

Prepare the correct trial balance.

$(6$ marks$)$