Question 3 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
Question 3 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Good day please help with the following question , the information as well as question has been attached in south african accounting standards
Transcribed Image Text:Question 3
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
2021
Sundry returns
CAJ
2 800 1 JUNE
Balance
b/d
55 130
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
O 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 acount 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.
Q.3.1 Taking into account all the errors/omissions noted above, prepare the corrected
Creditors Control account for the month of June 2021.
Balance the account.
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