Question 2 The following balances were extracted from the ledgers of Tampico Ltd on December 31, 2015: January 1, 2015: $ Purchases Ledger balance b/f- Dr 250,000 Purchases Ledger balances b/f- Cr 1,500,000 Sales Ledger balances b/f- DI 4,800,000 Sales Ledger balances b/f- Cr 560,000 December 31, 2015: Return outwards 20,000 Discount allowed 390,000 Cash paid to suppliers 1,200,000 Bad debt 80,000 Credit sales for the year 4,200,000 Cheques received from customers 4,850,000 Cash sales 100,000 Refunds to credit customers 430,000 Discounts received 120,000 Dishonoured customers cheques 580,000 Cash purchases 30,000 Interest on overdue customers accounts 180,000 Credit purchases for the year 2,650,000 Bad debts recovered 155,000 Refunds to cash customers 90,000 Purchases ledger debit balances 31/12/15 120,000 Interest on overdue suppliers accounts 218,000 Return inwards 35,000 Sales ledger credit balances 31/12/15 65,000 Refunds from credit purchases 365,000 Cash received from debtors 1,450,000 Purchases ledger credit balance 31/12/15 |2,873,000 Contra entry 390,000 Sales ledger debit balances, 31/12/15 2,500,000