Ignatius 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.