Question 1 RM Jan 1 2022 Purchase ledger opening balance (Credit) 21,870 Sales ledger opening balance (Debit) 22,370 Total for the year 2022: Purchases Journal 248,310 Sales Journal 201,460 Return Outwards Journal 2,886 Return Inwards Journal 6,516 Cheques paid to suppliers 136,500 Petty cash paid to suppliers 128 Cheques and cash received from customers 258,200 Discounts allowed 5,830 Discounts received 2,134 Balances on the sales ledger which is set off against balances in the purchases ledger 2,200 Required: (a) Prepare the purchases ledger control account and sales ledger control account. (15 marks)

(b) Explain any FOUR (4) purposes of preparing control accounts. (10 marks)