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QUESTION THREE [10] Variety General Dealers have a creditors' subsidiary ledger with a creditors control account in the general ledger. On 31 October 2019, the
QUESTION THREE [10] Variety General Dealers have a creditors' subsidiary ledger with a creditors control account in the general ledger. On 31 October 2019, the creditors control account showed a preliminary balance, before taking any of the additional information into account, as follows: 31 October 2019 Creditors control account: preliminary balance R8 841 1 880 On 31 October 2019, the creditors' ledger of Variety General Dealers showed the following list of creditors: List of creditors as at 31 October 2019 Balance - R A Font C Bolt 2616 D Coil 2 060 E Dots 2 118 Preliminary total 8 674 Additional information: After a thorough investigation of the source documents, journals and individual accounts, the following errors and/or omissions were detected: 1. A payment of R50 issued to C Bolt as payment of account, was erroneously debited to the repairs and maintenance account. 2. A Font's account was incorrectly shown on the list as R1 880. The correct amount is R1 890 3. The creditors' column in the Purchases journal showed a total of R5 554. The amount was posted to the creditors' control as R5 455. 4. A credit note from C Bolt for R34 was entered in the purchases journal but not posted to C Bolt's account in the creditors' ledger. 5. E Dots' account was credited with a credit note of R100 received from Bolt on 28 October 2019. 6. An invoice for R600 from D Coil for repairs to equipment was recorded in the general journal as R60 and posted to D Coil's account as R60. The correct amount was posted to the creditors' control account. Required: 1. Use the information above and prepare the creditors control account at 31 October 2019 showing all entries regarding the corrections necessary to undertake a reconciliation (7) 2. Prepare a creditors' reconciliation statement as at 31 October 2019. Use the following format for the reconciliation: (3) Balance Adjusted Name of creditor Given - R Adjustments Balance - R A Font 1 880 ??? ??? C Bolt 2 616 ??? ??? D Coil 3060 ??? ??? E Dot 1 118 ??? ??? Total - given 8 674 Total-adjusted
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