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gnatius had the following balances on his trade receivables and trade payables on 1 December 2006. Customers owed K40 250 and he owed suppliers 26
gnatius had the following balances on his trade receivables and trade payables on 1 December 2006. Customers owed K40 250 and he owed suppliers 26 423. Credit balances in the trade receivables ledger amounted to K3 845 and debit balances in the trade payables ledger amounted to K1 985. During the month his daybooks showed the following totals: Purchases 408 563 Sales 854 239 Returns inwards 44 271 Returns outwards 32 662 Payments to suppliers 300 912 Receipts from customers 675 843 Discounts received 9 027 Discounts allowed 20 275 Amounts written off to bad debts 13 173 Transfers between the receivables ledger and the payables Ledgers 7 457 Rebates on customer invoices 3 244 Refunds of cash from suppliers 5 877 On 31 December 2006 amounts owed to customers were K2 119. Suppliers who owed him amounts at start of the year had paid K1 525. REQUIRED Prepare a trade receivables control account and a trade payables control account, showing the balances to carry forward to the following month
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