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Debtors and Creditors Control Account The following figures were taken from the books of Alan Campion during January 2018: € Debtors ledger balance 01/01/2018 dr 86,500 Debtors ledger balance 01/01/2018 cr 3,300 Creditors ledger balance 01/01/2018 cr 45,000 Creditors ledger balance 01/01/2018 dr 440 Returns outwards (purchases returns) 5,000 Discount allowed 1,600 Discount received 1,400 Sales (including cash sales €12,200) 200,400 Cheques paid to suppliers 80,200 Cheques received from customers 120,300 Bad debts written off 3,200 Transfer from debtors ledger to creditors ledger 2,100 Returns inwards (sales returns) 3,600 Purchases (including cash purchases €15,200) 180,900 Bills payable accepted 7,100 Bills receivable issued 18,200 Discount disallowed to Alan Campion 2,500 Cheques received dishonoured 1,900 Interest charged by Alan Campion on overdue accounts 1,250 Debtors ledger balance 31/01/2018 1,250 cr Creditors ledger balance 31/01/2018 820 dr You are required to prepare for January 2018: (a) The debtors ledger control account - Leaving Cert Accounting - Question 2 - 2018
Question 2
Debtors and Creditors Control Account The following figures were taken from the books of Alan Campion during January 2018: € Debtors ledger balance 01/01/2018 dr ... show full transcript
Worked Solution & Example Answer:Debtors and Creditors Control Account The following figures were taken from the books of Alan Campion during January 2018: € Debtors ledger balance 01/01/2018 dr 86,500 Debtors ledger balance 01/01/2018 cr 3,300 Creditors ledger balance 01/01/2018 cr 45,000 Creditors ledger balance 01/01/2018 dr 440 Returns outwards (purchases returns) 5,000 Discount allowed 1,600 Discount received 1,400 Sales (including cash sales €12,200) 200,400 Cheques paid to suppliers 80,200 Cheques received from customers 120,300 Bad debts written off 3,200 Transfer from debtors ledger to creditors ledger 2,100 Returns inwards (sales returns) 3,600 Purchases (including cash purchases €15,200) 180,900 Bills payable accepted 7,100 Bills receivable issued 18,200 Discount disallowed to Alan Campion 2,500 Cheques received dishonoured 1,900 Interest charged by Alan Campion on overdue accounts 1,250 Debtors ledger balance 31/01/2018 1,250 cr Creditors ledger balance 31/01/2018 820 dr You are required to prepare for January 2018: (a) The debtors ledger control account - Leaving Cert Accounting - Question 2 - 2018
Step 1
The debtors ledger control account.
Answer
Debtors Ledger Control Account
| Date | Details | Dr (€) | Cr (€) |
|------------|--------------------------|----------|----------|
| 01/01/2018 | Balance b/d | 86,500 | |
| | Sales | 192,000 | |
| | Interest charged | 1,250 | |
| | Dishonoured cheques | | 1,900 |
| | Bad debts written off | | 3,200 |
| | Transfer to creditors | | 2,100 |
| | Returns inwards | 3,600 | |
| 31/01/2018 | Balance c/d | | 1,250 |
| 01/02/2018 | Balance b/d | 130,500 | |
| Totals | | 282,850 | 130,500 |
Step 2
The creditors ledger control account.
Answer
Creditors Ledger Control Account
| Date | Details | Dr (€) | Cr (€) |
|------------|--------------------------|----------|----------|
| 01/01/2018 | Balance b/d | | 45,000 |
| | Purchases | 165,000 | |
| | Returns outwards | | 5,000 |
| | Discount received | | 1,400 |
| | Cheques paid | 80,200 | |
| | Bills payable accepted | 7,100 | |
| | Bills receivable issued | 18,200 | |
| 31/01/2018 | Balance c/d | | 820 |
| 01/02/2018 | Balance b/d | 211,520 | |
| Totals | | 211,520 | 117,480 |