$($a$)$ Oliver Bentley maintains control accounts in his general ledger. He prepared a Sales Ledger Control Account for January $2004,$ with information derived from his subsidiary books. The debit balance shown in the Sales Ledger Control Account at January $31,2004,$ does not agree with the list of debtors extracted from the sales ledger at that date. The value of debtors according to the sales ledger at January $31,2004,$ was $$14872.$

The following errors were subsequently discovered:

K$.$ Boodraj, a bad debtor whose account had been written off in $2003,$ sent a cheque for $$198.$ The amount was entered in the sales ledger.

In January a page of the sales returns day book had been overcast by $$200.$

Discounts received of $$156$ had been mistakenly entered in the discounts allowed column of the cash book in January $2004.$

A debit balance of $$824$ on $S.$ McCalla's account in the sales ledger had been set off against his account in the purchases ledger. This entry had not been recorded in either control account.

A $$58$ discount allowed to Ram Sookie had been correctly entered in the cash book but had not been entered in Ram's account.

$($i$)$ Calculate the total of the debtors' balances at January $31,2003,$ after the errors have been corrected. $($Show your workings.$)(4$ marks$)$

$($ii$)$ Calculate the total debtors' balance in Bentley's Sales Ledger Control Account for the month of January $2004,$ before the errors had been corrected.

$(8$ marks$)$

$($b$)$ On April $1,2004,$ a business purchased a machine costing $$224000.$ The machine has a life expectancy of approximately $40$ months. At the end of that time the machine is expected to have a trade$-$in value of $$24000.$ The financial year of the business ends on December $31,$ each year.

$($i$)$ Use the formula for calculating annual depreciation on the 'Straight$-$line Method' to determine the annual depreciation on the machine.

$(2$ marks$)$

$($ii$)$ Calculate the depreciation charge at the end of the first year.

$(1$ mark $)$

$($iii$)$ Show the depreciation account for the first two years.

$(5$ marks$)$

Total $20$ marks

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$239020/$F $2005$