Control Accounts - Quality Limited Tutorial Question The trial balance of Qualit

Question

Control Accounts - Quality Limited Tutorial Question The trial balance of Quality Ltd. revealed a difference in the books. From the following, prepare the control accounts and show where an error may have occurred. Suggest reasons why there might be a difference between the balance on the control account and the total of the list of individual ledger 11,874 19,744 Purchases ledger balances Sales ledger balances Totals for the year Purchases journal Sales journal Returns Outward journal Returns Inward journal Cheques paid to supplier Petty Cash paid to suppliers Cheques and cash received from customers Discounts allowed Discounts received Balances on the sales ledger set off against balances in the purchases ledger 154,562 199,662 2,648 4,556 146,100 78 185,960 5,830 2,134 1,036 14,530 22,024 Dec31 Balances from the purchases ledger total Balances from the sales ledger total Provide an example of an error which could have created the difference in this case

Explanation / Answer

Dear Student, First we will create sales ledger and pruchase ledger SALES LEDGER DATE PURCHASES AMOUNT DATE PURCHASES AMOUNT Jan-01 RETURNS INJWARD 4556 Jan-01 OPENING 19744 CHEQUES AND CASH RECEIVED FROM CUSTOMERS 185960 SALES 199662 DISCOUNT ALLOWED 5830 BALANCE IN SALES LEDGER SETOFF AGAINST BALANCE AGAINST PURCHASE LEDGER 1036 31-Dec CLOSING BALANCE 22024 219406 219406 PURCHASE LEDGER DATE PURCHASES AMOUNT DATE PURCHASES AMOUNT Jan-01 OPENING 11874 Jan-01 RETURN OUTWARD 2648 PURCHASES 154562 Jan-01 CHEQUE PAID TO SUPPLIERS 146100 CASH PAID TO SUPPLIERS 78 DISCOUNT RECEIVED 2134 BALANCE IN SALES LEDGER SET OFF 1036 CLOSING BALANCE 14530 DIFFERENCE 90 166526 166526 HERE THE DIFFERENCE IS 90 IN PURCHASE LEDGER. THIS DIFFERENCE MAY ARISE BECAUSE OF ERROR OF OMISSION, ERROR OF COMMISION, ERROR OF PRINCIPLES

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.