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	The following information was taken from the books of Big Boy Traders. Most of the sales take place on credit. Debtors are given credit terms of 30 days. The business does not expect to award any settlement discounts. All settlement discounts are therefore incidental in nature. Additional information: The incomplete Debtors Control account for the month of March 2019 has been provided to you below. You have also been provided with a Debtors list. This list reflects all amounts owing by the debtors at 31 March 2019. The following errors/omissions were noted: The total of the Debtors Journal was overcast by R 150. A return of goods by D. Dagwood for R 870 including VAT was correctly recorded in the journal but posted to the account of E. Egghead. An invoice issued to D. Dagwood for R 4 200 has been posted to the wrong side of his personal account. No entry has been made for a cheque for R 1 500 which was returned by the bank due to insufficient funds. The cheque was originally received from A. Apples in settlement of an account for R 1 750. A credit note issued to A. Apples for R 540 has been incorrectly entered in her personal account as R 450. Goods sold on credit to E. Egghead for R 1 870 including VAT have been incorrectly entered in the Debtors Journal as a sale to D. Dagwood and posted as such.

The Independent Institute of Education (Pty) Ltd 2020

Page 7 of 14

20 2020

General Ledger of Big Boy Traders Statement of financial position accounts section

Dr Debtors Control Cr
Date	Details	Fol.	Amount	Date	Details	Fol.	Amount
2019 March 1	Balance	b/d	10 000	2019 March 31	Bank		20 000
	Sales and VAT		35 000		Sales and VAT		450
	Sales returns and VAT		2 400		Bank (R/D)		430
	Interest Income		20		Credit Losses and VAT		250

Debtors List as at 31 March 2019

Debtor	Preadjusted Balance(R)
A. Apples	5 400
D. Dagwood	8 600
E. Egghead	(690)Cr
F. Fudge	2 200

Required:

Q.3.1

Prepare a corrected Debtors Control account using the information provided above. (Note: The opening balance of R 10 000 is incorrect.)

(19)

Q.3.2

Prepare a corrected debtors list. (Show all workings as marks will be allocated.)