The following debtors control account and debtors list prepared by the inexperienced bookkeeper ofBips Traders. A number of errors and omissions were discovered after an investigation was done. The following errors and omissions were discovered after the above were drawn up:1. The opening balance in the debtors control account should have been R114 462.2. The account of S. Khumalo is two months overdue. Interest must be charged at 20% p.a.3. The debtors column in the cash receipts journal was undercast by R1 800.4. A return of goods by M. Smith for R414 as per credit note number 26 was erroneouslyentered in his account as a credit sale and the balance was calculated as such.5. No entry has been made for a cheque for R5 940 that was returned by the bank marked R/Dinsufficient funds. The cheque was previously received from debtor L Kramer in settlement ofa debt of R5 940. The account must also be written off as L Kramer cannot be traced.6. A credit sale of R3 060 to J Mbeki was incorrectly posted to the account of A Alexander.7. A credit note issued to A Alexander for R8 940 for goods returned by him was incorrectlyposted to his account in the debtors ledger as R8 580.Required:Prepare the Debtor's List as at 31 May 2022 (show all workings, a control account is not required) Information:2022May 0131June 01BalanceSalesBalanceA AlexenderJ MbekiS KhumaloJ HenryM Smithb/d 114 642SJ563 000b/dDebtor's List as at May 2022DebtorDEBTORS CONTROL ACCOUNT177 64280 3882022May 31Debit (R)6 3365 04011 34057 3680 076Bank anddiscountSales returns SRJ5Balancec/dCredit (R)480CRJ548093 7623 49280 388177 642

When a company has numerous debtors, it prepares debtors’ control account for accurate and easy…

Information: 2022 May 01 31 June 01 Balance Sales Balance b/d SJ5 A Alexender J Mbeki S Khumalo J Henry M Smith b/d Debtor's List as at May 2022 Debtor DEBTORS CONTROL ACCOUNT 114 642 63 000 177 642 80 388 2022 May 31 Debit (R) 6 336 5 040 11 340 57 360 80 076 Bank and discount Sales returns SRJ5 Balance c/d Credit (R) 480 480 CRJ5 93 762 3 492 80 388 177 642

Information: 2022 May 01 31 June 01 Balance Sales Balance b/d SJ5 A Alexender J Mbeki S Khumalo J Henry M Smith b/d Debtor's List as at May 2022 Debtor DEBTORS CONTROL ACCOUNT 114 642 63 000 177 642 80 388 2022 May 31 Debit (R) 6 336 5 040 11 340 57 360 80 076 Bank and discount Sales returns SRJ5 Balance c/d Credit (R) 480 480 CRJ5 93 762 3 492 80 388 177 642

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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which of the following regarding errors is not correct Select one: a. unintentional misstatement of the financial statements, b. mistake in recording the date of a sale invoice is error c. it is easier for the auditor to detect because it is not intentional d. Fraudulent Financial Reporting is kind of error
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