Q. I need help with a question Kathe Wisdom operates a mini-mart. At the end of May 2016 the following information was taken from the companys 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 May 31, 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. Question

#2 The following Trial Balance was extracted from the books of K. Coley a sole trader on March 31, 2016, the end of her financial year. Trial Balance as at March 31, 2016 Details/Accounts $ $ Machinery 8,000,000 Provision for depreciation on machinery 2,000,000 Bad debt 150,000 Cash at bank 7,000,000 Stock, Apr 1, 2015 8,000,000 Salaries 6,000,000 Carriage inwards 300,000 Purchases 30,500,000 Returns Inwards 500,000 Returns Outwards 500,000 Provision for bad debt 320,000 Drawings 570,000 Stationery 250,000 Cash in hand 700,000 Motor vehicles 8,000,000 Office furniture 2,800,000 Debtors 6,500,000 Creditors 5,300,000 Capital 16,450,000 Discounts Allowed 450,000 Discounts received 380,000 Commission expense paid 1,000,000 Commission income received 300,000 Interest 450,000 Sales 55,500,000 Insurance 480,000 82,100,000 82,100,000 Notes: (i) Stocks on March 31, 2016 were valued at $3,750,000. (ii) Depreciation is to be charged as follows: Motor vehicles 10% straight line; office furniture 10% on cost; Machinery 5% on the reducing balance method. (iii) $50,000 was for insurance expenses relating to on April 2016. (iv) Reduce the provision by bad debt to 4% of debtors Required:

`(a) Trading and Profit and Loss Account for the period ending Mar 31, 2016.

(b) A Balance Sheet as at March 31, 2016.