Question 2 The following information relating to the month of March 2021 was extracted from the books of E Gaskell: At I March 2021 RM Purchases Ledger. Dr. balances 202 Purchases Ledger Cr. balances 13,578 Sales Ledger - Dr. balances 24,760 Sales Ledger. Cr. balances 150 Transactions for the month ended 31 March 2021 Returns outwards Debit balances in sales ledger transferred to purchases ledger Payment to suppliers Credit sales Discount received Returns inwards Credit purchases Discount allowed Bad debts written off Dishonoured cheque Receipts from customers At 31 March 2021 Sales Ledger - Cr. balances Purchases Ledger - Dr. balances 2.572 708 80,764 122.764 2.220 4.440 85,182 3,488 402 772 105,742 440 280 Page 2 of 3 Jan A. 2001 B0/05 Sum DBFTOL Indonesia Required: (a) Prepare for the month of March 2021: (1) Purchases Ledger Control Account. (ii) Sales Ledger Control Account (9 marks) (11 marks) (b) Based on your answers to (a), comment on the following: (1) Why are there two balances brought down on 1 March 2021 for each of the Purchases Ledger Control Account and the Sales Ledger Control Account? Explain in not more than 200 words. (4 marks) (ii) What is a dishonoured cheque? What is its effect on the control account? Discuss in not more than 100 words. (3 marks) (11) What is a bad debt? How would it influence the control account? Discuss in not more than 100 words. (3 marks) [Total: 30 Marks