please answer below using appropriate accounting methods please show detailed solutions! anc x +6 / 7100%+ | 回の|Question 3The trial balance of Fruit Ltd. as at 31 December 2020 failed to balance. In order tolocate the errors, it was decided to prepare purchases and sales ledger controlaccounts. The following information is available:€1 Jan 2020 Purchases ledger balancesSales ledger balances37,76042,900Totals for the year 2020Purchases day bookSales day bookReturns outwards day bookReturns inwards day bookCheques paid to suppliersCash paid to suppliersCheques received from customersCash received from customersDiscounts allowedDiscounts received432,750659,00045,67824,300343,0008,750597,0006,75061,00042,75031 Dec 2020: The list of balances from the purchases ledger shows a total of€35,750 and that from the sales ledger a total of €12,850.Requirements:a) Prepare the purchase ledger (account payables) control account and thesales ledger (account receivables) control account.b) State where any one error has been made, and provide an example of whatcould have caused that error.c) Having reviewed the control accounts you prepared in a) above, Hannah, theowner of Fruit Ltd. asks you why you would prepare such accounts. Write amemo to Hannah explaining what a control account is, how it relates topersonal accounts and double entry book-keeping, and the key benefits ofmaintaining control accounts.tvW

a) Prepare the purchase ledger (account payables) control account and the sales ledger (account receivables) control account. b) State where any one error has been made, and provide an example of what could have caused that error.

a) Prepare the purchase ledger (account payables) control account and the sales ledger (account receivables) control account. b) State where any one error has been made, and provide an example of what could have caused that error.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

please answer below using appropriate accounting methods

please show detailed solutions!

anc x +
6 / 7
100%
+ | 回の
|
Question 3
The trial balance of Fruit Ltd. as at 31 December 2020 failed to balance. In order to
locate the errors, it was decided to prepare purchases and sales ledger control
accounts. The following information is available:
€
1 Jan 2020 Purchases ledger balances
Sales ledger balances
37,760
42,900
Totals for the year 2020
Purchases day book
Sales day book
Returns outwards day book
Returns inwards day book
Cheques paid to suppliers
Cash paid to suppliers
Cheques received from customers
Cash received from customers
Discounts allowed
Discounts received
432,750
659,000
45,678
24,300
343,000
8,750
597,000
6,750
61,000
42,750
31 Dec 2020: The list of balances from the purchases ledger shows a total of
€35,750 and that from the sales ledger a total of €12,850.
Requirements:
a) Prepare the purchase ledger (account payables) control account and the
sales ledger (account receivables) control account.
b) State where any one error has been made, and provide an example of what
could have caused that error.
c) Having reviewed the control accounts you prepared in a) above, Hannah, the
owner of Fruit Ltd. asks you why you would prepare such accounts. Write a
memo to Hannah explaining what a control account is, how it relates to
personal accounts and double entry book-keeping, and the key benefits of
maintaining control accounts.
tv
W

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