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Question 1
The following is a list of balances relating to Phiri Properties Ltd during 2010. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained.
These were as follows:
$
Debit balance in debtors account 01/01/10 66,300
Credit balance in creditors account 01/01/10 50,600
Sunday credit balance on debtors ledger 724
Goods purchased on credit 257,919
Goods sold on credit 323,614
Cash received from debtors 299,149
Cash paid to suppliers 210,522
Discount received 2,663
Discount allowed 2,930
Cash purchases 3,627
Cash sales 5,922
Interest on overdue account of customers 277
Returns outwards 2,926
Return inwards 2,805
Accounts settled by contra between debtors and creditors ledgers 1,106
Credit balances in debtors ledgers 31/12/10 815
Debit balances in creditors ledger 31/12/10 698
Required:
a) Prepare the debtors control account as at 31/12/10.
b) Prepare the creditors control account as at 31/12/10
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