The following is a list of balances relating to Phiri Properties Ltd during 2010. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained. These were as follows:                                                                                                                $ Debit balance in debtors account 01/01/10                                        66,300 Credit balance in creditors account 01/01/10                                                 50,600 Sunday credit balance on debtors ledger                                                 724 Goods purchased on credit                                                               257,919 Goods sold on credit                                                                         323,614 Cash received from debtors                                                              299,149 Cash paid to suppliers                                                                       210,522 Discount received                                                                                 2,663 Discount allowed                                                                                  2,930 Cash purchases                                                                                     3,627 Cash sales                                                                                             5,922 Bad Debts written off                                                                           3,651 Interest on overdue account of customers                                              277 Returns outwards                                                                                 2,926 Return inwards                                                                                    2,805 Accounts settled by contra between debtors and creditors ledgers     1,106 Credit balances in debtors ledgers 31/12/10                                          815 Debit balances in creditors ledger 31/12/10                                          698 Required: a) Prepare the debtors control account as at 31/12/10. b) Prepare the creditors control account as at 31/12/10

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 1

The following is a list of balances relating to Phiri Properties Ltd during 2010. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained.

These were as follows:
                                                                                                               $
Debit balance in debtors account 01/01/10                                        66,300
Credit balance in creditors account 01/01/10                                                 50,600
Sunday credit balance on debtors ledger                                                 724
Goods purchased on credit                                                               257,919
Goods sold on credit                                                                         323,614
Cash received from debtors                                                              299,149
Cash paid to suppliers                                                                       210,522
Discount received                                                                                 2,663
Discount allowed                                                                                  2,930
Cash purchases                                                                                     3,627
Cash sales                                                                                             5,922
Bad Debts written off                                                                           3,651
Interest on overdue account of customers                                              277
Returns outwards                                                                                 2,926
Return inwards                                                                                    2,805
Accounts settled by contra between debtors and creditors ledgers     1,106
Credit balances in debtors ledgers 31/12/10                                          815
Debit balances in creditors ledger 31/12/10                                          698

Required:
a) Prepare the debtors control account as at 31/12/10.
b) Prepare the creditors control account as at 31/12/10

 

 

 

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