Question
Question 3 {[18] The following information below relates to Sunrise Traders for December 2020 A. The incorrect Creditors List on 31 December 2020 CREDITORS DEBIT
Question 3 {[18]
The following information below relates to Sunrise Traders for December 2020
A. The incorrect Creditors List on 31 December 2020
CREDITORS | DEBIT | CREDIT |
Super Wholesalers | R15 000 | |
Yellow Traders | R13 800 | |
Nutcracker Warehouse | R3 110 | |
Canary Suppliers | R10 640 | |
Highlight Suppliers | R5 300 | |
Red Riding Suppliers | R9 600 | |
Pink Fabrics | R5 040 |
B. Additional information:
1. The total in the Creditors Journal was overstated by R5 680.
2. Merchandise of R830 was returned to Super Wholesalers and correctly entered in the Creditors Allowances Journal. However, it was posted to Super
Wholesalers account in the Creditors Ledger as a purchase.
3. An invoice for goods bought from Nutcracker Warehouse for R1 080 was recorded in the Creditors Journal as R1 808 and posted as such.
4. Owing to a calculation error, the balance of Red Riding Suppliers account in the Creditors Ledger was reflected as R9 600 instead of R13 300.
5. A debit note of R990 was issued to Canary Suppliers for goods returned to them. They accepted the returns but no entry was made in the books of Sunrise Traders for this transaction.
6. An invoice for R2 830 received from Highlight Suppliers, correctly recorded in the journals, was incorrectly posted to the Creditors Ledger account of Pink Fabrics.
Required:
Refer to the information in A and B.
Prepare the correct Creditors List on 31 December 2020.
Show all workings next to each creditor.
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