Question 5

You are presented with information from the records of Mafusa Dealers. Required:

1. Provide the missing information denoted by (a) to (d) in the Debtors Control account given below.

2. Provide the source documents that will support the entries for R32 000 and R15 000 on the credit side of the Debtors Control account.

3.Give one (1) reason (example) for the following entries: Do not give the same reason for both entries.

The entry of R12 500 on the credit side of the control account.

The entry of R4 760 on the debit side of the control account.

4 .Explain why the balance on the Debtors Control Account in the General Ledger should be the same as the total on the Debtors List

Information A. GENERAL LEDGER OF MAFUSA DEALERS DEBTORS CONTROL 2014 Balance 2014 31 (c) DAJ 32000 15 000 280 12 500 b/d 31 Sales 80 000 8 000 4 760 Bank Discount allowed Sundry accounts Balance CRJ GJ cld CPJ Sundry accounts GJ June Balance bld i. The total credit sales were undercast by R2 400. ii. A cash discount of R410 granted to B. Gumede (a debtor) was not recorded in the respective journal ii. Goods valued at R670 returned by B. Gumede was posted in error to the Debtor's Ledger account of L. Ngema iv. Goods sold to L. Ngema for R3 210 was recorded as R2 310 in the correct journal, and posted as such to the ledger accounts. No. DEBTORS CONTROL DEBTORS LIST iv