Question
As the accountant for PoppersTraders (Pty) Ltd. You received the following statement of account from a supplier, Sweet tooth Traders (Pty) Ltd for purchases made
As the accountant for PoppersTraders (Pty) Ltd. You received the following statement of account from a supplier, Sweet tooth Traders (Pty) Ltd for purchases made during January 2022:
Poppers Traders (Pty) Ltd had the following transactions recorded in their trade payables general ledger account for Sweet Tooth Traders (Pty) Ltd for January 2022:
transactions that occurred during January 2022:
(a) prepare the Trade payables general ledger account of Sweet Tooth Traders (Pty) Ltd in the books of Poppers Traders (Pty) Ltd showing all the adjustments and additional transactions necessary to correctly account for the January 2022 transactions. Not required to process any of the transactions already processed in the account given above, you only need to show the adjustments required and any additional transactions that were not already included in the trade payables account given above. Close off the account at the end of 31 January 2022.
Use the format listed below and using the current closing balances documented in the general ledger account given above:
(b) also prepare the Trade payables Reconciliation between Poppers Traders (Pty) Ltd and Sweet Tooth Traders (Pty) Ltd for January 2022.
Supplier statement from: Sweet tooth (Pty) Ltd Addressed to customer: Poppers Traders (Pty) Ltd Period: 01 January 202231 January 2022 JAN UL Trade Payables: SWEET TOOTH TRADERS (Pty) Ltd: \begin{tabular}{|l|l|} \hline Invoice INV001 & Thisinvoicerelatestopurchasesmadeon31Decemberandhasalreadybeenrecordedinthegeneralledgeraccountonthatdate. \\ \hline Credit note CN002 & ThesegoodswerereturnedbyPoppersTraders(Pty)Ltdon13December2021.TheaccountantforgottoaccountforthiscreditnoteinDecember2021. \\ \hline Invoice INV003 & Theaccountantincorrectlycalculatedthetradediscountat20%insteadof25%asallowedbySweetToothTraders(Pty)Ltd,(thesupplier). \\ \hline Receipt R004 & PopperTraders(Pty)LtdpaidR9664toSweetToothTraders(Pty)Ltd,however,boththegeneralledgerandstatementofaccountareincorrectlyillustratingthepaymentasR9446. \\ \hline Invoice INV005 & Wasforthepurchaseof8boxesofcaramelchocolatescostingR660each,lessatradediscountof25%. \\ \hline \end{tabular} Credit note CN006 Half of the merchandise purchased on 8 January 2022 (INV005) was returned. \begin{tabular}{|l|l|} \hline Invoice INV007 & These goods were received on 15 January 2022. \\ \hline Invoice INV008 & Thesearepurchasesmadebyanothershop,LekkerTraders(Pty)Ltd,on11January2022. \\ \hline Invoice INV009 & PoppersTraders(Pty)Ltdpurchasedadditionalsugarconeson12January2022.Theaccountantaccuratelyrecordedthistransactioninthegeneralledger;however,itwasnotfoundonthestatementofaccountreceivedfromSweetToothTraders(Pty)Ltd. \\ \hline Invoice INV010 & TheaccountantofPopperTraders(Pty)LtdnotifiedSweetToothTraders(Pty)LtdthatINV010isincorrectlyreflectingasacreditonthestatementofaccountandshouldberectifiedaccordingly.TheaccountantincorrectlyrecordedthistransactionasacreditnoteCN010. \\ \hline \end{tabular} Trade payable: SWEET TOOTH TRADERS (PTY) LTD \begin{tabular}{|cr|lcr|} \hline DATE Description & Amount & DATE & Description & Amount \\ Totals hrought & 14822 & & Totals hrought & 15934 \\ forward / Opening & & & forward/Opening & \end{tabular}Step by Step Solution
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