Theory question 102
Control AccountsSection B (answer three questions only from this section)
2. The following balances were extracted from the books of Goody Enterprises on 30th September, 1994.
Purchase Ledger balances Cr 1/10/93: N7,532
Sales ledger balances Dr 1/10/93: N7,948
Purchases day book: N90,454
Sales day book: N77,530
Returns outwards day book: N3,960
Returns inwards day book: N14,180
Cheques received from customers: N56,680
Cheques paid to suppliers: N61,860
Cash refund from a supplier who was overpaid: N240
Discounts allowed: N3,774
Discounts received: N2,678
Credit notes received: N280
Debit notes issued: N530
You are required to prepare: (a) Debtors Control Account; (b) Creditors Control Account.
Show the model answer
(a) Debtors (sales ledger) control account
Dr: balance b/f 7,948; credit sales 77,530; debit notes issued (extra charges to customers) 530 = 86,008.
Cr: returns inwards 14,180; cheques received 56,680; discounts allowed 3,774; balance c/d 11,374.
Balance b/d 11,374 (Dr).
(b) Creditors (purchases ledger) control account
Cr: balance b/f 7,532; credit purchases 90,454; cash refund from supplier 240 = 98,226.
Dr: returns outwards 3,960; cheques paid 61,860; discounts received 2,678; credit notes received 280; balance c/d 29,448.
Balance b/d 29,448 (Cr).
Items that increase what customers owe go on the debit of the debtors control; items that reduce what we owe suppliers go on the debit of the creditors control.