1
Q1 The books of David gave the following information for the year ended 31 October 2015.
(All sales and purchases are on credit).
$
Sales ledger balances at 1 November 2014:
Debit 4 500
Credit 800
Sales 49 000
Purchases 24 000
Sales return 2 000
Purchase return 1 700
Irrecoverable debts 240
Discounts allowed 360
Discounts received 300
Payments to credit suppliers 9 000
Receipts from credit customers 29 000
Customers' dishonoured cheque 750
Refunds to credit customers 440
Debit balances transferred to purchase ledger control accounts 625
a) Prepare sales ledger control account from the above information for the year ended 31 October 2015.
Sales ledger control account
$ $
[11]
2
David’s sales ledger control account gave a balance of $26 880 on 31 October 2016. It was different from
the total of sales ledger.
On investigation the following errors were found:
1. The total of sales return day book was understated by $80.
2. Credit note received from Joseph a credit supplier $152 was recorded in sales return day book as
$125.
3. A debit balance of $450 was omitted from list of trade receivables.
4. Discount allowed was under stated by $40 in cash book.
5. Cheque received from a credit customer $120 was not recorded in cash book. Correct entry was
recorded in sales ledger.
6. An irreoverable debt of $100 was completely omitted from the books.
7. A cheque received of $150 from a credit customer was correctly recorded in cash book and sales
ledger control account. However, it was debited in sales ledger by $160.
8. Correct contra of $90 was recorded in sales and purchases ledger. But it was omitted from control
accounts completely.
9. Invoice issued of $700 was recorded in sales return day book.
10. Cheque received from a credit customer $260 in full settlement of $290 and $30 was given a cash
discount for an early payment. This entry was correctly recorded in the books.
But later the bank returned the cheque marked insufficient funds. It was not recorded in control
account. Correct entry was recorded in sales ledger.
b) Prepare an amended sales ledger control account for the year ended 31 October 2016.
Amended sales ledger control account
$ $
[11]
3
c) Find out the balance as per sales ledger before correction of errors.
(Use the following layout)
Balance as per sales ledger (list of trade receivables)
10
Balance as per amended sales ledger control account
[8]
[Total: 30]
