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Show general journal entries to record the declaration of dividends on 30 November 2019 and the subsequent payment of dividends on 31 December 2019. Show
Show general journal entries to record the declaration of dividends on 30 November 2019 and the subsequent payment of dividends on 31 December 2019. Show dates on which the journal entries will be recorded. Include a brief narration (10) QUESTION THREE [20] Dean Stone operates a business, Stone Wear Style, for which the accounting records include control accounts for debtors and a separate control account for creditors. Dean just promoted Charlie Bait to maintain records of the control accounts and to reconcile the lists and the control accounts balances. The following information relates to March 2019: DR Debtors control alc CR 2019 R 2019 R 1.3 Balance (correct) b/d 31 340 31.3 Sales returns 4 440 31.3 Bank (debtors column) 90 990 credit 850 Discounts granted 1 370 Bank debtor 67 602 Credit sales 96 330 refunds 2016 Drawings 300 Credit purchases 550 Purchases returns 4 262 Cash purchases 7 960 credit Discounts received 141 174 Bank-creditors column Balance c/d 224 592 224 592 Balance b/d 141 174 Additional information: 1.1 At 1 March 2019, the balance of the creditors control account was R16 680. 1.2. There are errors in the above debtors control account that need to be corrected. There are items recorded that should not be reflected in the debtors control account. Some items are also on the wrong side of the account. REGENT BUSINESS SCHOOL (RBS) - JANUARY 2020 35 BACHELOR OF COMMERCE IN SUPPLY CHAIN MANAGEMENT YEAR 1 ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE 1.3 The total of the list of debtors balances at 31 March 2019 was R32 120 1.4 An amount of R230 written-off as credit losses, has erroneously been added to the credit sales amount of R96 330. This entry has been posted correctly to the personal account of the debtor in the debtors subsidiary ledger 1.5 The sales journal was over-cast by R840. 1.6 A credit sale of R340 was not posted to the personal account of the debtor in the debtors ledger account. The amount has been posted correctly to the sales account and the debtors control account in the general ledger 1.7 A credit note for R140 was recorded correctly in the sales retums journal but posted to the wrong side of the debtor's personal account in the debtors subsidiary ledger. 1.8 The debtors column in the cash receipts journal includes an amount of R390 being a settlement discount received from a creditor. 1.9 The purchase journal was under-cast by R1 436. 1.10 The R850 was refunded to a debtor because their account was overpaid. Required: 3.1.1 Prepare a properly balanced debtors control account, corrected for errors that exist in the given account, and a properly balanced creditors control account for March 2019. NB. The additional information must also be taken into account. (16) 3.2 Prepare the debtors reconciliation statement for March 2019
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