Theory question 103
Incomplete RecordsThe following balances were extracted from the books of Usen Stores on 31st December, 1993.
Returns Outwards ₦190
Cash payment to creditors for goods supplied ₦11,250
Returns inwards ₦410
Cash received from debtors for sales ₦17,784
Bills payable ₦3,404
Discount received ₦1,054
Bills receivable ₦2,400
Discount Allowed ₦1,092
Bad Debts ₦506
Balance of sundry creditors for goods supplied as at 1/1/93 ₦2,452
Balance of sundry debtors for sales as at 1/1/93 ₦4,260
Balance of creditors for goods supplied as at 31/12/93 ₦2,678
Balance of debtors for sales as at 31/12/93 ₦5,720
You are required to determine by Control Accounts the amount of: (a) Purchases as at 31st December 1993 and (b) Sales as at that date.
Show the model answer
(a) Purchases Ledger Control Account: Dr returns outwards 190; cash 11,250; bills payable 3,404; discount received 1,054; balance c/d 2,678; total 18,576 / Cr balance b/d 2,452; credit purchases (missing figure) ₦16,124
(b) Sales Ledger Control Account: Dr balance b/d 4,260; credit sales (missing figure) ₦23,652 / Cr returns inwards 410; cash 17,784; bills receivable 2,400; discount allowed 1,092; bad debts 506; balance c/d 5,720; total 27,912
Put every known item in the control account; the balancing figure is the purchases (or sales).