(a) The opening balance on the payables control account of Consumables Ltd at 1 September 20X7 was £43,000 credit, made up of the following balances:Exo£28,000 CROvo£10,000 CRIva £5,000 CRThe following transactions occurred in the first week of September: £Credit purchases:Exo52, 000Ovo17,000lva 8, 00077,000Cash purchases:29,000Credit purchase returns:Exo 3,000Amounts paid to suppliers:Exo48, 000Ovo 19, 000lva 7, 00074, 000Cash discounts received:Exo 1,500Ovo 350lva 150 2,000Contra settlements: Ovo 800Requirement: Prepare the general ledger accounts, including the payables ledger control account. Then prepare the individual supplier accounts, ensuring that they reconcile to the control account.NB You may enter totals for each transaction type in the ledger accounts.

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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.  

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