Question 3 The information given below was extracted for the records of Zebro Tr
ID: 2437564 • Letter: Q
Question
Question 3
The information given below was extracted for the records of Zebro Traders for May 2017
Required.
3.1 Prepare the correct Creditors Control Account for my 2017.Balance the account. (11)
3.2 Prepare the corrected Creditors List as at 31 May 2017.
Information
Credit balance in the creditor’s control account on 01 May 2017
R 256 500
Transaction’s for May 2017(excluding the additional information below):
R
Merchandise purchased on credit
660 600
Merchandise purchased by cheque
446 400
Cheques issued to creditors in payment of accounts and discounts received
642 150
Merchandise returned to creditors
7 560
Stationery purchased on account
14 400
Interest charged by a creditor on an overdue account
270
Creditors List AS at 31 May 2017
Creditor
Debit
Credit
Union Limited
Voltex Suppliers
Tropical Manufactures
Southgate Enterprises
Proworx Wholesalers
2700
41 400
63 180
169 200
30 600
2700
304 380
Additional Information not yet recorded.
1. The balance in the account of Proworx Wholesalers must be transferred to their account in the Debtors ledger.
2. A credit note received from Union Limited for Merchandise returned was not recorded in the Purchases Returns Journal. R8 100.
3. An invoice received from Tropical Manufactures for goods purchased was correctly entered in the Purchases Journal as R7500 but erroneously posted to their account as R 9120 in the creditors Ledger.
4. An electronic funds transfer to Voltex Suppliers in part settlement of account was not recorded in the Cash Payment Journal, R6300.
5. A cheque to Southgate Enterprises for R9000 was correctly recorded in the Cash Payments Journal but treated as a purchase in the suppliers account in the CREDITORs ledger.
Credit balance in the creditor’s control account on 01 May 2017
R 256 500
Transaction’s for May 2017(excluding the additional information below):
R
Merchandise purchased on credit
660 600
Merchandise purchased by cheque
446 400
Cheques issued to creditors in payment of accounts and discounts received
642 150
Merchandise returned to creditors
7 560
Stationery purchased on account
14 400
Interest charged by a creditor on an overdue account
270
Explanation / Answer
creditors control account dr cr Date R Date R bank 642150 01.05.2017 balance b/f 256500 Discount Received 18450 purchases 660600 purchase return 7560 purchases 446400 31.05.2017 balance c/d 710010 purchases 14400 overdue interest 270 1378170 1378170 Creditors List AS at 31st May 2017 union Limited 41400 less: debit balance -2700 less: Purchase Return -8100 30600 Voltex Suppliers 63180 cash payment not recorded -6300 56880 Tropical Manufactures 169200 Less: goods purchase wrong amount -9120 recorded in creditor account Add: goods purchase 7500 167580 Southgate Enterprises 30600 Less: purchase wrongly recorded -9000 21600 Proworx Wholesalers
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