5. Debtor Brad Pot's account of R1 700 is included with AN Other debtors R94 880. Attorneys have confirmed that Brad has been declared insolvent. The balance of his account of R1 700 must be written-off as irrecoverable. The credit loss has already been recorded in the Debtors control account. Required : Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors' Control account for the period ended 31 August 2021. Present your solutions as follows: 2.1 Debtors Control account: Dr Debtors' Control Account Cr 2021 31.8 Balance b/d R | 2021 31.8 R 141 500 2.2 List of debtors: DL Given Adjusted Balance - R Debtors' list Folio Balance- R Adjustments 15 070 19 240 13 760 DL1 Andy Beauty DL2 Cindy AN Other DL3 DL 4 to 79 94 880 Debtors Total of the list 142 950 of debtors
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors’ Control account for the period ended 31 August 2021.
![5. Debtor Brad Pot's account of R1 700 is included with AN Other debtors R94 880.
Attorneys have confirmed that Brad has been declared insolvent. The balance of his
account of R1 700 must be written-off as irrecoverable. The credit loss has already been
recorded in the Debtors control account.
Required :
Take the errors and omissions into account and reconcile the list of debtors to the adjusted
balance of the Debtors' Control account for the period ended 31 August 2021. Present your
solutions as follows:
2.1 Debtors Control account:
Dr
Debtors' Control Account
Cr
2021
R
| 2021
31.8
R
31.8 Balance b/d
141 500
2.2
List of debtors:
DL
Given
Adjusted
Folio Balance- R
15 070
19 240
Debtors' list
Adjustments
Balance - R
DL1
Andy
Beauty
Cindy
AN Other
DL2
DL3
13 760
DL 4
94 880
Debtors
to 79
Total of the list
of debtors
142 950](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbae90abc-ea92-4ea0-bf18-af2384c3ee04%2F672d03ef-1f13-44ca-b8a2-6ee62fca4f4d%2Fzpbgki_processed.jpeg&w=3840&q=75)
![Hybrid Solutions have many debtors and therefore keep records of transactions with
individual debtors in a Debtors' Subsidiary ledger (DL) while the general ledger houses the
Debtors' Control account. Total of the list of debtors is reconciled at least once a month with
the balance of the Debtor's Control Account.
The following is the summarised list of debtors at 31 August 2021 before any adjustments
were made for errors and omissions:
Debtors' list - Balances before corrections for errors
DL
Balance
and omissions
Folio
Amount - R
15 070
19 240
13 760
94 880
Andy
DL1
Beauty
DL2
Cindy
DL3
AN Other Debtors
DL 4 to 79
Total of the list of debtors
142 950
All the totals from the subsidiary journals have been posted to the Debtors' Control account
and a debit balance of R141 500 at 31 August 2021as shown below.
Errors and omissions still to be taken into account for the reconciliation of the list of
debtors and the Debtors'Control account at 31 August 2021:
1. Sales of R3 680 to Cindy were incorrectly recorded in the sales journal as a sale to Andy
and posted as such.
2. A receipt of R5 000 from Beauty was incorrectly recorded as R4 000 in the cash receipts
journal and posted to Beauty's account.
3. Cindy was granted an allowance of R400 for goods sent to her that were slightly
damaged. The allowance was incorrectly recorded in the Sales journal whereas it should
have been recorded in the sales returns and allowances journal.
4. Interest of R250 must be charged to the overdue part of Andy's account. The interest
has already been recorded in the Debtors' control account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbae90abc-ea92-4ea0-bf18-af2384c3ee04%2F672d03ef-1f13-44ca-b8a2-6ee62fca4f4d%2Frdn6qd9_processed.jpeg&w=3840&q=75)
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