Question 4 The following information has been extracted from the accounting records of Osmond Brothers, who use a manual accounting system that includes a debtors and creditors ledger R Balances: 20 Debtors control account at 01/03/2007 Creditors control account at 01/03/2007 25 000 21 100 Cash receipt journal columns: Sales column Discount allowed column Debtors column 46 900 6 900 69 200 Cash payments journal columns: Purchases column Discount received column Creditors column 37 380 2 400 47 460 Totals of other subsidiary journals: Sales journal Purchases journal Returns inwards journal Returns outwards journal 99 500 71 600 6 280 4 300 Activ Go to Other information: 1. The balance of R200 on B. King's account, which was previously written off as bad, was recovered and included in the debtors column of the cash receipts journal and posted to the debtors ledger. 2. Included in the creditors column of the cash payments journal is an amount of R4 000 in respect of an R/D (return to drawer) cheque received from debtor B. Bounce. The amount was correctly posted to his account in the debtors ledger. The sales journal was overcast by R1 000. 3. 4. A credit note for R120 issued to K. Paton was not entered in the sales returns journal. 5. A transaction for goods to the value of Ri 100, sold on credit to N. Nair, was correctly entered in the sales journal but posted as R1 000 to Nair's account in the debtors ledger. The returns outwards journal was undercast by R300. 6. Required (a) Record the adjusting journal entries necessary to rectify the debtors and creditors control accounts. (b) Draw up the debtors and creditors control accounts at 31 March 2007 incorporating the adjustments. Activa Go to se [20] NO