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Control Accounts Q7

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5 views

Control Accounts Q7

Uploaded by

Krishna 11
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Control Accounts and Reconciliation Question 7

QUESTION 7 – Control Accounts and Reconciliation (1007)

The trail balance of Outsize Books Ltd revealed a difference in the books. In order that the error(s)
could be located it was decided to prepare purchases and sales ledger control accounts.

From the following prepare the control accounts and show remaining difference.
20X8 Rs.
Jan 1 Purchase ledger balances 19,420
Sales ledger balances 58,227
TOTALS FOR THE YEAR 20X8
Purchases journal 210,416
Sales journal 305,824
Returns Outwards journal 1,452
Returns inwards journal 3,618
Cheque paid to suppliers 205,317
Petty cash paid to suppliers 62
Cheques and cash received from customers 287,317
Discount allowed 4,102
Discount received 1,721
Balances on sales ledger set off against balances in the purchase ledger 640

Dec 31 The list of balances from the purchases ledger shows a total of Rs.20,210 and that from
the sales ledger a total of Rs. 38,374.

Page 1 of 2 (kashifadeel.com)
Control Accounts and Reconciliation Question 7

ANSWER 7 – Control Accounts and Reconciliation (1007)

Creditors Control A/c


Rupees Rupees
Purchase return 1,452 Opening balance 19,420
Bank 205,419 Purchases 210,416
Petty cash 62
Discount received 1,721
Creditors control account 640
Closing balance (bal) 20,542
229,836 229,836

Closing adjusted balance as per T – account 20,542


Closing adjusted balance as per question (20,210)
Unknown difference 332

Debtors Control A/c


Rupees Rupees
Balance b/f 58,227 Sales return 3,618
Sales 305,824 Cash and bank 287,317
Discount allowed 4,102
Creditor control account (contra) 640
Balance c/f (Dr.) 68,374
364,051 364,051

Closing adjusted balance as per T – account 68,374


Closing adjusted balance as per question (38,374)
Unknown difference 30,000

Page 2 of 2 (kashifadeel.com)

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