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Mr Alfed calls you into his office and explains that the Monthly Accounts Payable ledgers for August 2020 for Radcliff Rifles has yet to be

Mr Alfed calls you into his office and explains that the Monthly Accounts Payable ledgers for August 2020 for Radcliff Rifles has yet to be written up. He hands you the following series of notes:

At 1 August 2020, Radcliffe Rifles had the following list of creditors.

Name

$

Parkers Products

2550

Yau Ammunition

2819

Swanton Supplies

1798

Niu Things

2772

Total Accounts Payable

9939

During the month of August, Radcliffe Rifles had the following transactions with its creditors.

Purchases Journal

Date 2018

Creditor

Invoice No.

Accounts Payable

2 Aug

Swanston Supplies

PL 785

242

5 Aug

Parker Products

SX2945

924

9 Aug

Yau Ammunition

2485

1320

12 Aug

Parker Products

SX 3013

660

17 Aug

Swanston Supplies

PL 823

110

22 Aug

Niu Things

N812

3080

29 Aug

Yau Ammunition

2512

1650

31 Aug

TOTALS

7986

Cash Payments Journal extract

Date

Details

Bank

Discount Received

4 Aug

Yau Ammunition

2 220

6 Aug

Parker Products

1 550

7 Aug

Swanston Supplies

290

8

7 Aug

Niu Things

1 000

10 Aug

Yau Ammunition

599

10 Aug

Parker Products

980

20

14 Aug

Swanston Supplies

1 200

14 Aug

Parker Products

877

46

20 Aug

Swanston Supplies

242

20 Aug

Yau Ammunition

1 267

52

30 Aug

Niu Things

1 772

Aug Totals

11997

126

Required:

Mr Alfred asks you to draw up an Accounts Payable Control Account ledger and post the information above to this account in the General Ledger. Balance the account at 31 August, and prepare the account for the next reporting period.

Required:

Post the relative information to the Parker Products account in the Accounts Payable Subsidiary Ledger

for the month of June. Balance the account at the end of each month and prepare the account for the next

reporting period.

Mr Alfreds assistant is confused as to why Mr Alfred has his clients maintain both control accounts

and subsidiary records. She sees little benefit to the business as the same person maintains both records.

Required:

Explain to Mr Alfreds assistant why Mr Alfred has his clients maintain both records.

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