Accounting Test Question CO No. 1 On Control Account

Accounting Test Question CO No 1 On Control Account

Question:

The following information related to Mr. William for the year ended 30 September 2005:-

	$
Interest charged to debtors	326
Carriage charged to debtors	3,290
Cash purchases	12,735
Returns inwards	1,938
Bad debts written off	853
Cheque payments to suppliers	64,320
Discount received	1,717
Allowance to debtor for damaged goods	500
Cash sales	76,321
Debtor’s cheques dishonoured	2,639
Purchases Returns	1,222
Credit sales	132,845
Discount allowed	3,699
Transfer of debit balance in Sales Ledger to Purchases Ledger	2,850
Credit purchases	70,394
Cheques received from debtors	144,820
	144,820
Debit balances in Purchases Ledger at 30 September 2005	563
Credit balances in Sales Ledger at 30 September 2005	2,154
Provision for Doubtful debts	4,500

Balances in the books of Mr William at 1 October 2004:

Sales Ledger Debit : $43,628

Credit: $1,240

Purchases Ledger

Debit: $324

Credit :$24,695

Required:

(a) Prepare the Purchases Ledger Control Account and Sales Ledger Control Accounts as they would appear in the General Ledger of Mr William for the year ended 30 September 2005 ( 18 marks)

(b) Prepare a Balance Sheet extract showing Trade Debtors and Trade Creditors at 30 September 2005 (7 marks)

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