Ouestion 4

Anakazo is a spare parts dealer. Included in his accounting records are the purchases and sales ledger control accounts. The following information is produced during the quarter ended 31" March 2011:

Opening Balances on:

Purchases ledger control account (DR 1,200 , CR 24000) Sales Ledger control account( DR 40000 , CR 1150 )

DR (GHC) CR (GHC)

i. Goods purchased and received from suppliers: Gross invoice value before trade discount: 225,600

Net invoice value after trade discount : 200,000

ii. Goods returned to suppliers:

Gross invoice value before trade discount: 19,500 Net invoice value after trade discount: 16,000

iii. Goods sold to customers:

Gross invoice value before trade discount: 350,000 Net invoice value after trade discount: 320,000

iv. Goods returned from customers: Gross invoice value before trade discount: 9,000 Net invoice value after trade discount: 8,550

v. Amount due to suppliers: Total amount : 170, 000

Cash paid in full settlement: 155,000

vi. Amount due from customers: Total amount: 320,000

vii. Cash received from customers in full settlement: 288,000

viii. Customers debts written off as irrecoverable: 1,500

ix. At 31" March 2011, both the purchases and sales ledgers include account with Timothy with the following balances:

Purchases ledger - GHe1,850 (Cr) Sales ledger - GHe1,500 (Dr)

x. It has been decided to set-off Timothy's balance in the sales ledger against her balance in the purchases ledger.

xi. The Sales ledger as at 31/03/11 included the following accounts credit balance:

Audrey - GH&350; Seshie - GHe750 and Dan - GHe120

xii. The purchases ledger at 31/03/11 included the following accounts with debit balances; Hannah - GHe1,200; Mate - GH550

Required to prepare:

a. The purchases ledger control account

b.The sales ledger control account