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Control Accounts

The document outlines the financial transactions for debtors and creditors, including balances, credit sales, purchases, returns, and payments. It requires the preparation of total accounts for debtors and creditors for August 2023, as well as the advantages of maintaining these accounts. Additionally, it provides totals for the year 2023 for purchases and sales journals, along with related transactions.

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pchingwaru544
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Download as DOCX, PDF, TXT or read online on Scribd
6 views

Control Accounts

The document outlines the financial transactions for debtors and creditors, including balances, credit sales, purchases, returns, and payments. It requires the preparation of total accounts for debtors and creditors for August 2023, as well as the advantages of maintaining these accounts. Additionally, it provides totals for the year 2023 for purchases and sales journals, along with related transactions.

Uploaded by

pchingwaru544
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CONTROL ACCOUNTS

$
Debtors balances 5 800 Dr
200 Cr
Creditors balances 2 600
Credit sales 41 600
Credit purchases 15 000
Returns outwards 25 000
Returns inwards 200
Cash and cheques from all customers 52 000
Cheques paid to creditors 17 000
Credit customers cheques dishonoured 2 500
Discount allowed 300
Discount received 450
Interest charged by suppliers 230
Sales ledger balances transferred to purchases ledger 2 300
Cash refund to credit customers 1 200
Bad debts written off 900
Debit balances in the purchases ledger 40
Credit balances in the sales ledger 70

Required
a) Prepare the debtors total account for the month of August 2023. (9 Marks)
b) Prepare the creditors total control account for the same month. (9 Marks)
c)State any two advantages of preparing the total accounts. (2 Marks)
$
Purchases ledger balances 19 420
Sales ledger balances 28 227
Totals for the year 2023
Purchases journal 210 416
Sales journal 305 824
Returns outwards journal 1 452
Returns inwards journal 3 618
Cheques paid to suppliers 205 419
Petty cash paid to suppliers 62
Cheques and cash received from customers 287 317
Discount allowed 4 102
Discount received 1 721
Balances on the sales ledger off set against balances in the 640
purchase’s ledger
Required
Prepare Purchases and Sales ledger control accounts. [Total 20 Marks]

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