Question 3 [16]

You are the internal auditor of PB Gifts, a gift shop owned by Pat Bolt. The Creditors Control Account and Creditors List were prepared by the bookkeeper, Linda Lemmings. The postings from the journals have been done, but you have noted a number of errors and omissions.

CREDITORS LIST ON 31 JULY 2019

	DEBIT	CREDIT
Khan Traders	R563
Thankful Stores		R30 560
Connel Ltd		R10 890
Yolisa Wholesalers		R18 500
TOTALS	R563	R59 950

Errors and omissions:

1. A credit invoice for trading stock purchased from Connel Ltd for R3 400 on 28 July 2019 was not recorded at all.
2. Stock purchased on credit from Connel Ltd, R7 200, was incorrectly posted to the account of Yolisa Wholesalers.
3. Interest of R258 charged by Connel Ltd was omitted.
4. The debit balance of Khan Traders must be transferred to their account in the Debtors Ledger.
5. Goods of R8 350 returned to Thankful Stores were incorrectly treated as a credit purchase and posted accordingly.
6. A discount of R230 received from Yolisa Wholesalers was incorrectly posted to the Creditors Ledger as R320. The General Ledger is correct.
7. An amount of R80 in the Creditors Allowances Journal for trading stock returned was posted to the wrong side of a creditors account, Thankful Stores.
8. VAT of R490 was omitted from an invoice of equipment bought from Yolisa Wholesalers.

Required:

Prepare a correct Creditors list on 31 July 2019. Show workings in brackets. Complete the answers in the exact format below.

CREDITORS LIST ON 31 JULY 2019

	Debit	Credit
Khan Traders
Thankful Stores
Connel Ltd
Yolisa Wholesalers