QUESTION 1 The following balances were extracted from the books of Alloy Ltd on January 2011 Dr Cr Purchases Ledger 1,912 83,025 Sales Ledger 130,905 1,940 In the month of January 2011, the following transactions were made: Debit balance on Sales Ledger transferred to Purchases Ledger Debtor's cheque dishonoured Legal fees charged to customer Sales on credit Credit purchases Returns outwards to credit suppliers Returns inwards from credit customers Cash sales Cash purchases Discount allowed Discount received Bad debts written off Payments to credit suppliers Receipts from credit customers Refund to customer for overpayment At 1 February 2011, the following information was available: Purchases Ledger debit balances Sales Ledger credit balances The provision for doubtful debts is to be 2% of debtors at 31 January 4,956 1,908 300 133,650 96,645 3,795 1,590 19,005 10,913 1,305 1,600 474 81,540 127,385 600 480 787 QUESTION 1 The following balances were extracted from the books of Alloy Ltd on January 2011 Dr Cr Purchases Ledger 1,912 83,025 Sales Ledger 130,905 1,940 In the month of January 2011, the following transactions were made: Debit balance on Sales Ledger transferred to Purchases Ledger Debtor's cheque dishonoured Legal fees charged to customer Sales on credit Credit purchases Returns outwards to credit suppliers Returns inwards from credit customers Cash sales Cash purchases Discount allowed Discount received Bad debts written off Payments to credit suppliers Receipts from credit customers Refund to customer for overpayment At 1 February 2011, the following information was available: Purchases Ledger debit balances Sales Ledger credit balances The provision for doubtful debts is to be 2% of debtors at 31 January 4,956 1,908 300 133,650 96,645 3,795 1,590 19,005 10,913 1,305 1,600 474 81,540 127,385 600 480 787