Question $2\mathrm{.}1$

$[15$ marks, $8$ minutes$]$

You are provided with the Creditor's Control account in the General Ledger

of Essence Traders. They have a policy of paying their creditors as soon as

possible, even if they receive $30$ days credit. Study the account and answer

the questions below.

General Ledger for Essence

Creditors Control Account

$2\mathrm{.}1\mathrm{.}1$ Enter the missing details $($a$-$c$),$ on your answer sheet as

$5\mathrm{.}2\mathrm{.}1$ a $-5\mathrm{.}2\mathrm{.}1$c$.$

$2\mathrm{.}1\mathrm{.}2$ Which source documents will support the entry of R$34500$ on the

Credit side.

$2\mathrm{.}1\mathrm{.}3$ Name one possible reason for the Journal Credits of R$500$ on the

Credit side.

$2\mathrm{.}1\mathrm{.}4$ The creditor allowed a R$420$ discount to Lessing Traders for early

settlement. How much was really paid to the creditor?

$(2)$

$2\mathrm{.}1\mathrm{.}5$ Lessing Traders are not happy with the quality of products they are

purchasing from the Creditors. Explain this and quote one figure

that supports this.

$2\mathrm{.}1\mathrm{.}6$ The creditors are paid too early. Explain how you can know this by

quoting one figure that supports this statement.