Ling & Jessop is a retail outlet for antique books that provides a book repair service and also

sells rare music manuscripts. Ling & Jessop is operated by Cam Ling and Tim Jessop. Mildred

Mildew is a repair specialist who works for Ling & Jessop on a fixed salary. Revenues are

generated through the sale of antique books $($approximately $75\%$ of total revenues$),$ rare

manuscripts $(10\%)$ and the repair of old books brought to the store $(15\%).$ Book sales are made

on both a credit and a cash basis. Customers receive prenumbered sales invoices. Credit terms

are always net$/30$ days. All manuscript sales and repair work are cash only.

Inventory is purchased on account from various antique book and manuscript dealers. Virtually

all suppliers offer cash discounts for prompt payment, and it is company policy to take all

discounts. All cash payments are made by EFT and include payments to suppliers, to transport

companies for freight on inventory purchases, and to newspapers, radio and TV stations for

advertising. All invoices for advertising are paid as received. Cam and Tim each make a

monthly drawing in cash for personal living expenses. The salaried repair woman is paid

fortnightly.

Ling & Jessop currently has a manual accounting system. Cam Ling is concerned about the

inefficiencies in journalising and posting transactions with the manual system. Two additional

bookkeepers were employed a month ago, but the inefficiencies have continued at an even

higher rate. However, Tim is old$-$fashioned and refuses to install an electronic accounting

system.

Required

Answer the following.

$($b$)$ What control and subsidiary accounts should be included in Ling & Jessop$$s manual

system? Why?

$($c$)$ Explain why the additional personnel did not help.

$($d$)$ What changes should be made to improve the efficiency of the accounting system