The Purchases Ledger Control Accounts of Pfozer, a private company, for the month of January 2018...
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The Purchases Ledger Control Accounts of Pfozer, a private company, for the month of January 2018 was prepared as shown below: Cash paid to suppliers Discount received Balance c/f Purchases Ledger Control Account Debit RM 1,253,270 12,500 455,730 1,721,500 2. 3. Balance b/f Credit purchases Purchases returns Interest charged Credit RM 105,000 1,600,000 4,000 12,500 1,721,500 The list of balances extracted from the Purchases Ledger at 31 January 2018 totalled RM 436,735. In addition to the error in the Purchases Ledger Control Account a shown above, the company's auditors discovered the following errors: 1. An invoice for RM 3,000 recorded in the Purchases Daybook was not posted to the Supplier's Account in the Purchases Ledger. The discount received column in the Cash Book was over-added by RM 2,000 The list of payables' balances includes a credit balance of RM 1,000, which was incorrectly listed as a debit balance. 4. The debit side of one Supplier's Account had been under-added by RM 250. 5. A credit balance of RM 3.295 has been omitted from the list of balances. 5. A credit balance of RM 3,295 has been omitted from the list of balances. 6. Purchases Ledger contras of RM 4,000, representing a balance in the Purchases Ledger set off against a balance in the Sales Ledger, have been recorded in the Account of the supplier but not in the Control Account. 7. A cheque from RM 14,500 paid to a supplier has been wrongly posted to the Supplier's Account RM 10,450. 8. A purchases invoice of RM 30,000 was omitted from the Purchases Daybook. 9. The Purchases Daybook was over-added by RM 5,000. Required: a. Prepare a statement correcting the balance at 31 January 2018 on the Purchases Ledger Control Account. (10 marks) b. Prepare a statement correcting the original total of the list of balances extracted from the Purchases Ledger. (12 marks) c. List three advantages of Control Accounts. The Purchases Ledger Control Accounts of Pfozer, a private company, for the month of January 2018 was prepared as shown below: Cash paid to suppliers Discount received Balance c/f Purchases Ledger Control Account Debit RM 1,253,270 12,500 455,730 1,721,500 2. 3. Balance b/f Credit purchases Purchases returns Interest charged Credit RM 105,000 1,600,000 4,000 12,500 1,721,500 The list of balances extracted from the Purchases Ledger at 31 January 2018 totalled RM 436,735. In addition to the error in the Purchases Ledger Control Account a shown above, the company's auditors discovered the following errors: 1. An invoice for RM 3,000 recorded in the Purchases Daybook was not posted to the Supplier's Account in the Purchases Ledger. The discount received column in the Cash Book was over-added by RM 2,000 The list of payables' balances includes a credit balance of RM 1,000, which was incorrectly listed as a debit balance. 4. The debit side of one Supplier's Account had been under-added by RM 250. 5. A credit balance of RM 3.295 has been omitted from the list of balances. 5. A credit balance of RM 3,295 has been omitted from the list of balances. 6. Purchases Ledger contras of RM 4,000, representing a balance in the Purchases Ledger set off against a balance in the Sales Ledger, have been recorded in the Account of the supplier but not in the Control Account. 7. A cheque from RM 14,500 paid to a supplier has been wrongly posted to the Supplier's Account RM 10,450. 8. A purchases invoice of RM 30,000 was omitted from the Purchases Daybook. 9. The Purchases Daybook was over-added by RM 5,000. Required: a. Prepare a statement correcting the balance at 31 January 2018 on the Purchases Ledger Control Account. (10 marks) b. Prepare a statement correcting the original total of the list of balances extracted from the Purchases Ledger. (12 marks) c. List three advantages of Control Accounts.
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The main difference between Purchase Ledger and Purchase Ledger Control ac is that the Purchase ledg... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
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