Question 3 The opening balances on 1 January in the books of Gladstone Led indluded the following: Purchase Ledger Control Account Sales Ledger Control Account E 313 800 530.800 During the year to 31 December, the following transactions took place: Credit Sales Cash Sales Credit Purchases Cash Purchases Amounts received from Debtors Amounts paid to Creditors Returns to Creditors Retums by Debtors Discounts Allowed Discounts Received 2.496.400 500.500 1712.000 12.800 2.712.800 1.285.000 5.000 12.720 2480 1800 Required Write up the Purchase Ledger Control account and the Sales Ledger Control account for the year. Balance off the two accounts at the year end. Aher the accounts had been prepared, was discovered that the Purchase lediger control account did not reconcile with the total of the individual balances in the Purchase ledger which was 6731,500. The following errors in the control account were subsequently found Make the necessary amendments to the control account to reconcile with the above balance Goods purchased for 1,000 had been returned to the supplier. The supplier account had been correctly updated, but no posting has been made to the control account The purchases day book had been undercast by 2.000 0 A contra entry had been agreed with a supplier who is also a customer to write of 3.500. The contra has not yet been entered in the control accounts. Do not make the sales lediger control adjustment) Explain the function of the control accounts (Total 15 marks) Question 4 - Prepare the Joumal Entries to record the following transactions for Nelson Pic at the end of the financial year 31" March 2019 General expenses of 28.500 included costs of E7.500 for installing a computer and 500 for freight charges for transporting the computer Provide for an accrual of 2.500 for salaries outstanding for the month of March 2013 Goods worth 8,500, which had been purchased for cash, had been entered in the ledger accounts as sales sold for cash. The credit controller ol Nelson Plc has decided to write off as a bad debt an amount of 12.000 which has been owing to the company for two years M A motor vehicle has been purchased from Allen Motors Co. for 23,500 M7.5% interest is owing on a loan of 24,000 Rent has been received on a shop for the half year 19 January 2019 to 30 June 2019 The amount received was 12.000 and the payment has already been included in the accounts Achegue payment for 7.700 to a creditor was entered onto the accounts, but incorrectly stated 7.070 112 Question 3 The opening balances on 1 January in the books of Gladstone Led indluded the following: Purchase Ledger Control Account Sales Ledger Control Account E 313 800 530.800 During the year to 31 December, the following transactions took place: Credit Sales Cash Sales Credit Purchases Cash Purchases Amounts received from Debtors Amounts paid to Creditors Returns to Creditors Retums by Debtors Discounts Allowed Discounts Received 2.496.400 500.500 1712.000 12.800 2.712.800 1.285.000 5.000 12.720 2480 1800 Required Write up the Purchase Ledger Control account and the Sales Ledger Control account for the year. Balance off the two accounts at the year end. Aher the accounts had been prepared, was discovered that the Purchase lediger control account did not reconcile with the total of the individual balances in the Purchase ledger which was 6731,500. The following errors in the control account were subsequently found Make the necessary amendments to the control account to reconcile with the above balance Goods purchased for 1,000 had been returned to the supplier. The supplier account had been correctly updated, but no posting has been made to the control account The purchases day book had been undercast by 2.000 0 A contra entry had been agreed with a supplier who is also a customer to write of 3.500. The contra has not yet been entered in the control accounts. Do not make the sales lediger control adjustment) Explain the function of the control accounts (Total 15 marks) Question 4 - Prepare the Joumal Entries to record the following transactions for Nelson Pic at the end of the financial year 31" March 2019 General expenses of 28.500 included costs of E7.500 for installing a computer and 500 for freight charges for transporting the computer Provide for an accrual of 2.500 for salaries outstanding for the month of March 2013 Goods worth 8,500, which had been purchased for cash, had been entered in the ledger accounts as sales sold for cash. The credit controller ol Nelson Plc has decided to write off as a bad debt an amount of 12.000 which has been owing to the company for two years M A motor vehicle has been purchased from Allen Motors Co. for 23,500 M7.5% interest is owing on a loan of 24,000 Rent has been received on a shop for the half year 19 January 2019 to 30 June 2019 The amount received was 12.000 and the payment has already been included in the accounts Achegue payment for 7.700 to a creditor was entered onto the accounts, but incorrectly stated 7.070 112