Sport Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have a debtors control account in the general ledger. The balance of the debtors control account at 1 May 2021 is R169 200. The following information was provided for the month ending 31 May 2021: 1. Journals provided the following totals for relevant transactions: For the month ended 31 May 2021 R Sales journal: Debtors column Sales returns journal Cash receipts journal: Debtors column General Journal: Interest charged on overdue debtors’ accounts General Journal: Debtors balances written off as irrecoverable 762 000 6 300 586 800 2 100 2 700 2. The debtors ledger clerk submitted the following : List of debtors balances as at 31 May 2021 – debit balances R C Gale H Bolt G Hunt I Khune R Nadal 31 500 132 300 182 700 18 900 9 000 3. Additional information to be taken into account (not included in the above): 3.1 No entry has been made for a credit sale of goods to C Gale for R 5 400. 3.2 R Nadal’s account must be written off as irrecoverable. 3.3 G Hunt must be charged R1 827 interest on his overdue account. 3.4 A credit note issued to I Khune for goods returned was erroneously entered in the account of C Gale in the debtors’ ledger. 3.5 The sales returns journal was undercast by R900. 3.6 A receipt issued to H Bolt for a payment on account of R37 800 was recorded in the cash receipts journal but was not posted to his account in the debtors’ ledger. Required: Use the above information provided to prepare the following: 2.1 The correct Debtors Control Account properly balanced for May 2021. 2.2 Reconciliation of the debtors list with the debtors control account for the month ended 31 May 2021. NB: Insert the amount of R4 500 for the credit note in additional amount 3.4.
Sport Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have a debtors control account in the general ledger. The balance of the debtors control account at 1 May 2021 is R169 200. The following information was provided for the month ending 31 May 2021: 1. Journals provided the following totals for relevant transactions:
|
For the month ended 31 May 2021 |
R |
| Sales journal: Debtors column Sales returns journal Cash receipts journal: Debtors column General Journal: Interest charged on overdue debtors’ accounts General Journal: Debtors balances written off as irrecoverable |
762 000 6 300 586 800 2 100 2 700 |
2. The debtors ledger clerk submitted the following :
| List of debtors balances as at 31 May 2021 – debit balances | R |
| C Gale H Bolt G Hunt I Khune R Nadal |
31 500 132 300 182 700 18 900 9 000 |
3. Additional information to be taken into account (not included in the above):
3.1 No entry has been made for a credit sale of goods to C Gale for R 5 400.
3.2 R Nadal’s account must be written off as irrecoverable.
3.3 G Hunt must be charged R1 827 interest on his overdue account.
3.4 A credit note issued to I Khune for goods returned was erroneously entered in
the account of C Gale in the debtors’ ledger.
3.5 The sales returns journal was undercast by R900.
3.6 A receipt issued to H Bolt for a payment on account of R37 800 was recorded in
the cash receipts journal but was not posted to his account in the debtors’ ledger.
Required:
Use the above information provided to prepare the following:
2.1 The correct Debtors Control Account properly balanced for May 2021.
2.2 Reconciliation of the debtors list with the debtors control account for the
month ended 31 May 2021.
NB: Insert the amount of R4 500 for the credit note in additional amount 3.4.
Step by step
Solved in 3 steps
