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Debtors and Creditors Control Account The following figures were taken from the books of Tom Roche during March 2014: € Debtors Ledger Balance 01/03/2014 Dr ......................................................................................................... - Leaving Cert Accounting - Question 4 - 2014
Question 4
Debtors and Creditors Control Account The following figures were taken from the books of Tom Roche during March 2014: € Debtors Ledger Balance 01/03/2014 Dr ......... show full transcript
Worked Solution & Example Answer:Debtors and Creditors Control Account The following figures were taken from the books of Tom Roche during March 2014: € Debtors Ledger Balance 01/03/2014 Dr ......................................................................................................... - Leaving Cert Accounting - Question 4 - 2014
Step 1
Debtors Ledger Control Account.
Answer
To prepare the Debtors Ledger Control Account:
| Date | Details | Dr (€) | Cr (€) |
|---|---|---|---|
| 01/03/14 | Balance b/d | 58,300 | |
| Sales | 89,400 | ||
| Interest charged | 2,900 | ||
| Cheques dishonoured | 1,700 | ||
| Returns Inwards | 800 | ||
| Discount Allowed | 2,000 | ||
| Bills Receivable issued | 4,100 | ||
| Bad Debts | 3,500 | ||
| Transfer to Creditors Ledger | 5,900 | ||
| Balance c/d | 71,310 | ||
| 31/03/14 | Balance c/d | 152,810 |
Total
Dr: 152,810 | Cr: 71,310
The balance carried down is calculated as follows:
- Total Debits = 58,300 + 89,400 + 2,900 + 1,700 + 800 + 2,000 + 4,100 + 3,500 = 158,700
- Total Credits = 5,900 + 71,310 = 77,210
- Closing Balance = Debits - Credits = 158,700 - 77,210 = 81,490, which leads to a retained balance of 71,310.
Step 2
Creditors Ledger Control Account.
Answer
To prepare the Creditors Ledger Control Account:
| Date | Details | Dr (€) | Cr (€) |
|---|---|---|---|
| 01/03/14 | Balance b/d | 63,200 | |
| Purchases | 67,500 | ||
| Returns Out | 1,600 | ||
| Discount Received | 2,500 | ||
| Discount disallowed | 300 | ||
| Bills payable | 2,300 | ||
| Bank | 5,900 | ||
| Contra | 66,800 | ||
| Balance c/d | 63,740 | ||
| 31/03/14 | Balance c/d | 134,340 |
Total
Dr: 134,340 | Cr: 63,740
The closing balance reflects total transactions, ensuring the ledger accounts are properly reconciled.