Hybrid Solutions have many debtors and therefore keep records of transactions with individual debtors in a Debtors’ Subsidiary ledger (DL) while the general ledger houses the Debtors’ Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtor’s Control Account. The following is the summarised list of debtors at 31 August 2021 before any adjustments were made for errors and omissions: Debtors' List - Balances Before correction for errors and ommissions DL Folio Balance Amount - R Andy DL 1 15 070 Beauty DL 2 19 240 Cindy DL 3 13 760 AN Other Debtors DL 4 to 79 94 880 Total of the list of Debtors 142 950 All the totals from the subsidiary journals have been posted to the Debtors’ Control account and a debit balance of R141 500 at 31 August 2021as shown below. Errors and omissions still to be taken into account for the reconciliation of the list of debtors and the Debtors’Control account at 31 August 2021: 1. Sales of R3 680 to Cindy were incorrectly recorded in the sales journal as a sale to Andy and posted as such. 2. A receipt of R5 000 from Beauty was incorrectly recorded as R4 000 in the cash receipts journal and posted to Beauty’s account. 3. Cindy was granted an allowance of R400 for goods sent to her that were slightly damaged. The allowance was incorrectly recorded in the Sales journal whereas it should have been recorded in the sales returns and allowances journal. 4. Interest of R250 must be charged to the overdue part of Andy’s account. The interest has already been recorded in the Debtors’ control account. 5. Debtor Brad Pot’s account of R1 700 is included with AN Other debtors R94 880. Attorneys have confirmed that Brad has been declared insolvent. The balance of his account of R1 700 must be written-off as irrecoverable. The credit loss has already been recorded in the Debtors control account. Required : Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors’ Control account for the period ended 31 August 2021. Present your solutions as follows: List of Debtors Debtors List DL Folio Given Balance - R Adjustments Adjusted Balance - R Andy DL 1 15 070 Beauty DL 2 19 240 Cindy DL 3 13 760 AN Other Debtors DL 4 to 79 94 880 Total of the list of Debtors 142 950
Hybrid Solutions have many debtors and therefore keep records of transactions with individual debtors in a Debtors’ Subsidiary ledger (DL) while the general ledger houses the Debtors’ Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtor’s Control Account.
The following is the summarised list of debtors at 31 August 2021 before any adjustments were made for errors and omissions:
| Debtors' List - Balances Before correction for errors and ommissions | DL Folio | Balance Amount - R |
| Andy | DL 1 | 15 070 |
| Beauty | DL 2 | 19 240 |
| Cindy | DL 3 | 13 760 |
| AN Other Debtors | DL 4 to 79 | 94 880 |
| Total of the list of Debtors 142 950 |
All the totals from the subsidiary journals have been posted to the Debtors’ Control account and a debit balance of R141 500 at 31 August 2021as shown below.
Errors and omissions still to be taken into account for the reconciliation of the list of debtors and the Debtors’Control account at 31 August 2021:
1. Sales of R3 680 to Cindy were incorrectly recorded in the sales journal as a sale to Andy and posted as such.
2. A receipt of R5 000 from Beauty was incorrectly recorded as R4 000 in the cash receipts journal and posted to Beauty’s account.
3. Cindy was granted an allowance of R400 for goods sent to her that were slightly damaged. The allowance was incorrectly recorded in the Sales journal whereas it should have been recorded in the sales returns and allowances journal.
4. Interest of R250 must be charged to the overdue part of Andy’s account. The interest has already been recorded in the Debtors’ control account.
5. Debtor Brad Pot’s account of R1 700 is included with AN Other debtors R94 880. Attorneys have confirmed that Brad has been declared insolvent. The balance of his account of R1 700 must be written-off as irrecoverable. The credit loss has already been recorded in the Debtors control account.
Required :
Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors’ Control account for the period ended 31 August 2021. Present your solutions as follows:
List of Debtors
| Debtors List |
DL Folio |
Given Balance - R | Adjustments | Adjusted Balance - R |
| Andy | DL 1 | 15 070 | ||
| Beauty | DL 2 | 19 240 | ||
| Cindy | DL 3 | 13 760 | ||
| AN Other Debtors | DL 4 to 79 | 94 880 | ||
| Total of the list of Debtors |
142 950 | |||
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