QUESTION $1$

From the following balances prepare the purchases ledger control accounts, clearly

showing the closing balance:

A$)$ June $1$ Purchases ledger balance $34,760$

Totals for the month:

Purchases journal $142,257$

Return outwards journal $5,000$

Cheques paid to suppliers $75,000$

Discounts received $2,130$

Set off against SL $2,200$

b$)$ Tamar Lambert is a sole trader. The following data was obtained from his books for the month of October $2022$:

Cash sales $2,560$

Cheques from debtors $1,520$

Return inwards $75$

Discounts allowed $30$

Debtors at Oct $11,120$

Debtors at Oct $311,485$

Purchases on credit $3,210$

Cash purchases $200$

Stock at Oct $11,180$

Stock at Oct $311,290$

QUESTION $2$

John Tee$$s trial balance at the end of the $2021$ period showed a shortage on the debit side of

$1134.$ On investigation, the following errors were found:

$1.$ Sales day book overstated by $$350$

$2.$ Discounts allowed was understated by $$100$

$3.$ Fixtures, bought for $$850,$ have been entered in the cash book but not in the fixtures account.

$4.$ Credit purchase of $$166$ was entered in the purchase day book only, but not in the creditor$$s account

You are required to:

a$)$ Prepare the journal entries showing the correction of the errors above

b$)$ Draw up the suspense account to record the corrections

Required:

bi$)$ Prepare the debtors control account for the month, clearly showing credit sales.

bii$)$ Calculate the gross profit for the month.