General ledger CREDITORS CONTROL B5 DATE DETAILS FOL AMOUNT DATE DETAILS FOL AMOUNT You are provided with the following extracts and information taken from the books of Leopard Traders for the month of June 2021. Leopard Traders sells clothing that they buy from various suppliers. Leopard Traders uses the perpetual inventory system. 1. You are provided with an incomplete Creditors Control for the month of June 2021. The balance at the beginning of the month is correct. CREDITORS CONTROL B5 DATE DETAILS FOL AMOUNT DATE DETAILS FOL AMOUNT 30 June Sundry returns CAJ 2 800| 1 JUNE Balance b/d 55 130 2021 2021 Bank СВР 24 000 Sundry CJ 13 000 purchases Settlement GJ 250 discount received The following errors/omissions were noted: A. The total of the creditors journal has been overcast by R600. В. No entry has been made for inventory bought on credit from Gemsbok Suppliers for R2 400 (including VAT) less 10% trading discount. C. An original credit note received from Giraffe Dealers for R435 was entered incorrectly in the Creditors Allowances journal as R345 © The Independent Institute of Education (Pty) Ltd 2021 Page 7 of 8 21 2021 D. No entry has been made for interest charged at 12% p.a, on the overdue account of R9 000 due to Zebra Stores at 30 June 2021. The account is four months overdue. E. Lion Wholesalers is also a debtor and shows a credit balance of R400 in the Debtors ledger. Management has decided to transfer this amount to Lion Wholesalers account in the creditor's ledger. No entry has been made.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Good day , please answer the following question for homework from my textbook : Taking into account all the errors/omissions noted above, prepare the corrected Creditors Control account for the month of June 2021. Balance the account. All information and format has been attached, May god bless you abundantly

General ledger
CREDITORS CONTROL
B5
DATE
DETAILS
FOL
AMOUNT
DATE
DETAILS
FOL
AMOUNT

You are provided with the following extracts and information taken from the books of Leopard
Traders for the month of June 2021. Leopard Traders sells clothing that they buy from various
suppliers. Leopard Traders uses the perpetual inventory system.
1.
You are provided with an incomplete Creditors Control for the month of June 2021. The
balance at the beginning of the month is correct.
CREDITORS CONTROL
B5
DATE
DETAILS
FOL AMOUNT
DATE
DETAILS
FOL AMOUNT
30 June
Sundry returns
CAJ
2 800| 1 JUNE
Balance
b/d
55 130
2021
2021
Bank
СВР
24 000
Sundry
CJ
13 000
purchases
Settlement
GJ
250
discount
received
The following errors/omissions were noted:
A.
The total of the creditors journal has been overcast by R600.
В.
No entry has been made for inventory bought on credit from Gemsbok Suppliers for R2 400
(including VAT) less 10% trading discount.
C.
An original credit note received from Giraffe Dealers for R435 was entered incorrectly in
the Creditors Allowances journal as R345
© The Independent Institute of Education (Pty) Ltd 2021
Page 7 of 8
21
2021
D.
No entry has been made for interest charged at 12% p.a, on the overdue account of R9 000
due to Zebra Stores at 30 June 2021. The account is four months overdue.
E.
Lion Wholesalers is also a debtor and shows a credit balance of R400 in the Debtors ledger.
Management has decided to transfer this amount to Lion Wholesalers account in the
creditor's ledger. No entry has been made.

Expert Solution

Step 1

The control account is asummary account prepared for preventing errors and frauds in business . So basically it is a nominal account which shows how much money you owes to your suppliers.

When asupplier is also debtor then that debit is transferred to his acount which is called as set off of account.

The effect of the errors and its rectifications are as under ---

A] The total of the creditors journal has been overcast by Rs. 600

Effect : credit purchase is shown excess. Crediors are excess.

Sundry Purchase 13000

Less total overcast 600

Adjusted S Purchase 12,400