ACCOUNTING

QUESTION TWD [15] Hybrid Solutions have many debtors and therefore keep records of transactions with individual debtors in a Debtors' Subsidiary:F ledger {DL} white the general ledger houses the Debtors' Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtor's Control Account. The following is me summarised list of debtors at 31 August 2021 before any adjustments were made for errors and omissions: Debtors' list - Balances before corrections for errors and omissions AN Other Debtors DL 4 to 'i'Q 94 330 Total of the list of debtors 142 550 All the totals from the subsidiary:' joumals have been posted to the Debtors\" Control account and a debit balance of R141 500 at 31 August 221as shown below. Errors and omissions still to be taken into account for the reconciliation of the list of debtors and the Dehtors'control account at 31 August 2021: 1. Sales of R3 680 to Cindy were incorrectly recorded in the sales joumal as a sale to Andy and posted as such. 2. A receipt of R5 DOD from Beauty was incorrectly recorded as R4 000 in the cash receipts journal and posted to Beaqu account. 3. Cindy:r was granted an allowance of R400 for goods sent to her that were slightly damaged. The allowance was incorrectly recorded in the Sales journal whereas it should have been recorded in the sales returns and allowances journal. 4. Interest of R250 must be charged to the overdue part of Andy's account. The interest has already been recorded in the Debtors* control account. 5. Debtor Brad Pot's account of R1 T00 is included witl'l AN Other debtors R94 330. Attorneys have conrmed that Brad has been declared insolvent. The balance of his account of R1 F00 must be written-off as irrecoirerabie. The credit loss has already been recorded in the Debtors control account. Required : Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors' Control account for the period ended 31 August 2021. Present your solutions as follows: 2.1 Debtors Control account: Dr Debtors' Control Account Cr 2021 R 2021 R 31.8 Balance b/d 141 500 31.8 2.2 List of debtors: DL Given Adjusted Debtors' list Folio Balance- R Adjustments Balance - R Andy DL 1 15 070 Beauty DL2 19 240 Cindy DL3 13 760 AN Other DL 4 94 880 Debtors to 79 Total of the list 142 950 of debtors