Q2. The trial balance of Queen and Square Ltd revealed a difference in the books. In order that the error(s) could be located it was decided to prepare purchases and sales ledger control accounts.

From the following prepare the control accounts and show where an error may have been made:

2012

Jan 1 Purchases ledger balances 11,874

Sales ledger balances 19,744

Totals for the year 2012

Purchases journal 154,562

Sales journal 199,662

Returns outwards journal 2,648

Returns inwards journal 4,556

Cheques paid to suppliers 146,100

Petty cash paid to suppliers 78

Cheques and cash received from customers 185,960

Discounts allowed 5,830

Discount received 2,134

Balances on the sales ledger set off against

balances in the purchases ledger 1,036

Dec 31 The list of balances from the purchases ledger shows a total of 14,530 and that from the sales ledger a total of 22,024.