The following has 1. An amount of irrecoverable.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Additional Information:
The following has not been taken into account in arriving at the figures above:
1. An amount of R5 202 owing by a debtor, F Skelm, must be written off as
irrecoverable.
2. The allowances for credit losses must be increased by R2 250.
3. On 10 December 2021, goods to the value of R6 300 was purchased on credit, but
was incorrectly recorded in the sales journal.
4. The credit balances in the debtors' ledger at 1 January 2021 must be transferred to
the creditors control account.
Transcribed Image Text:Additional Information: The following has not been taken into account in arriving at the figures above: 1. An amount of R5 202 owing by a debtor, F Skelm, must be written off as irrecoverable. 2. The allowances for credit losses must be increased by R2 250. 3. On 10 December 2021, goods to the value of R6 300 was purchased on credit, but was incorrectly recorded in the sales journal. 4. The credit balances in the debtors' ledger at 1 January 2021 must be transferred to the creditors control account.
The following information was extracted from the accounting records of Mega Store
(Pty) Ltd on 31 December 2021.
R
Sales journal
78 102
Purchases joumal
Sales returns journal
50 652
8 640
Purchases returns journal
Cash receipts journal :
4 356
Debtors control column
85 680
Settlement discount granted column
15 120
Sales column
149 778
Cash payments journal:
Purchases column
88 506
Debtors control column
10 638
Creditors control column
81 720
Settlement discount received column
11 934
General Journal: (Sundry entries)
Debtors control: Debits: Sale of Vehicle
12 186
Credits: Credit losses
1 860
Creditors control: Debits:
NIL
Credits: Purchased Equipment
9 594
General Ledger: Balances at 1 January 2021 –
Debtors control account: debit balance
121 140
: credit balance
2736
Creditors control account: credit balance (only)
82 116
Transcribed Image Text:The following information was extracted from the accounting records of Mega Store (Pty) Ltd on 31 December 2021. R Sales journal 78 102 Purchases joumal Sales returns journal 50 652 8 640 Purchases returns journal Cash receipts journal : 4 356 Debtors control column 85 680 Settlement discount granted column 15 120 Sales column 149 778 Cash payments journal: Purchases column 88 506 Debtors control column 10 638 Creditors control column 81 720 Settlement discount received column 11 934 General Journal: (Sundry entries) Debtors control: Debits: Sale of Vehicle 12 186 Credits: Credit losses 1 860 Creditors control: Debits: NIL Credits: Purchased Equipment 9 594 General Ledger: Balances at 1 January 2021 – Debtors control account: debit balance 121 140 : credit balance 2736 Creditors control account: credit balance (only) 82 116
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