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Kathe Wisdom operates a mini-mart. At the end of May 2016 the following information was taken from the company's records: May 1, 2016: $ Purchases

Kathe Wisdom operates a mini-mart. At the end of May 2016 the following information was taken from the company's records:

May 1, 2016:

$

Purchases Ledger balances b/f- Cr

3,400,000

Sales Ledger balances b/f- Dr

5,200,000

Purchases Ledger balance b/f- Dr

150,000

Sales Ledger balances b/f- Cr

252,000

May31, 2016:

Cash paid to suppliers

2,450,000

Cheques received from debtors

3,230,000

Dishonored customers cheques

150,000

Sales journal total

3,200,000

Interest on overdue customers' accounts

190,000

Set-off between purchases and sales ledgers

350,000

Bad debts

220,000

Goods returned to suppliers

500,000

Interest on overdue suppliers' accounts

150,000

Cash received from debtors

1,650,000

Cash received in respect of bad debts previously written off

180,000

Discount received

450,000

Cash sales

700,000

Cheques paid to suppliers

2,280,000

Return inwards

420,000

Cash purchases

980,000

Purchases journal total

3,550,000

Discount allowed

240,000

Provision for bad and doubtful debts

350,000

Purchases ledger balance, Cr

?

Sales ledger balance, Cr

106,000

Sales ledger balance, Dr

?

Purchases ledger balance, Dr

69,000

Required:

(a)Prepare Debtors Control Account for the month of May 2016.

(b)Prepare Creditors Control Account for the month of May 2016.

(c)Identify two (2) items from the above list of balances that will not be included in the Control Accounts.

(d)List two (2) purposes served by Control Accounts.

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