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Debtors and Creditors Control Account The following figures were taken from the books of Mary Burke during January 2016: | | | |-------------------|------------| | Debtors ledger balance 01/01/2016 dr | € 75,800 | | Debtors ledger balance 01/01/2016 cr | € 410 | | Creditors ledger balance 01/01/2016 cr | € 43,300 | | Creditors ledger balance 01/01/2016 dr | € 240 | | Returns outwards (purchases returns) | € 340 | | Discount allowed | € 1,520 | | Discount received | € 1,320 | | Purchases (including cash purchases € 5,600) | € 86,300 | | Returns inwards (sales returns) | € 3,600 | | Bills payable accepted | € 4,450 | | Bills receivable issued | € 2,500 | | Sales (including cash sales € 8,200) | € 101,600 | | Discount disallowed to Mary Burke | € 720 | | Cheques received from customers | € 83,300 | | Cheques paid to suppliers | € 60,400 | | Cheques received dishonoured | € 1,800 | | Bad debts written off | € 750 | | Interest charged by Mary Burke on overdue accounts | € 320 | | Transfer from debtors ledger to creditors ledger | € 450 | | Debtors ledger balance 31/01/2016 | € 450 | | Creditors ledger balance 31/01/2016 | € 630 | You are required to prepare for January 2016: (a) Debtors Ledger Control Account - Leaving Cert Accounting - Question 2 - 2016
Question 2
Debtors and Creditors Control Account The following figures were taken from the books of Mary Burke during January 2016: | | | |------... show full transcript
Worked Solution & Example Answer:Debtors and Creditors Control Account The following figures were taken from the books of Mary Burke during January 2016: | | | |-------------------|------------| | Debtors ledger balance 01/01/2016 dr | € 75,800 | | Debtors ledger balance 01/01/2016 cr | € 410 | | Creditors ledger balance 01/01/2016 cr | € 43,300 | | Creditors ledger balance 01/01/2016 dr | € 240 | | Returns outwards (purchases returns) | € 340 | | Discount allowed | € 1,520 | | Discount received | € 1,320 | | Purchases (including cash purchases € 5,600) | € 86,300 | | Returns inwards (sales returns) | € 3,600 | | Bills payable accepted | € 4,450 | | Bills receivable issued | € 2,500 | | Sales (including cash sales € 8,200) | € 101,600 | | Discount disallowed to Mary Burke | € 720 | | Cheques received from customers | € 83,300 | | Cheques paid to suppliers | € 60,400 | | Cheques received dishonoured | € 1,800 | | Bad debts written off | € 750 | | Interest charged by Mary Burke on overdue accounts | € 320 | | Transfer from debtors ledger to creditors ledger | € 450 | | Debtors ledger balance 31/01/2016 | € 450 | | Creditors ledger balance 31/01/2016 | € 630 | You are required to prepare for January 2016: (a) Debtors Ledger Control Account - Leaving Cert Accounting - Question 2 - 2016
Step 1
Creditors Ledger Control Account
Answer
To create the Creditors Ledger Control Account for January 2016:
| Creditors Ledger Control Account | € |
|-------------------------------------|-----------|
| Balance b/d | 240 |
| Purchases | 43,300 |
| Returns Outwards | 340 |
| Discount received | 1,320 |
| Bills payable | 4,450 |
| Cheques paid to suppliers | 60,400 |
| -------------------------------------|-----------|
| Total Debits | 124,960 |
|-------------------------------------|-----------|
| Balance c/d | 630 |
| Discount disallowed | 720 |
| Total Credits | 124,960 |
This account begins with the opening balance and sums purchases, returns outwards, discounts received, bills payable, and cheques. The discounts disallowed are deducted, resulting in a closing balance.