QUESTION ONE

The financial year of The Better Trading Company ended on 30 November 2017. You have been asked to prepare a Total Debtors Account and a Total Creditors Account in order to produce end-of-year figures for Debtors and Creditors for the final accounts draft.
You are able to obtain the following information for the financial year from the books of original entry:

TZS
Sales – cash 344,890
– credit 268,187
Purchases – cash 14,440
– credit 496,600
Total receipts from customers 600,570
Total payments to suppliers 503,970
Discounts allowed (all to credit customers) 5,520
Discounts received (all from credit suppliers) 3,510
Refunds given to cash customers 5,070
Balance in the sales ledger set off against balance in the purchases ledger 70
Bad debts written off 780
Increase in the provision for bad debts 90
Credit notes issued to credit customers 4,140
Credit notes received from credit suppliers 1,480

According to the audited financial statements for the previous year debtors and creditors as at 1 December 2016 were T.shs 26,555 and T.shs 43,450 respectively.

Required:
Draw up the relevant Total Accounts entering end-of-year totals for debtors and creditors.


  • Updated: 18 Jul 20
  • |
  • Attempts: 23
  • |
  • Correct: 3

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Total debtors balance:
QUESTION TWO

The balances on the personal ledger control account of Galaxy Ltd at 31st December 2019 were as follows:

Particulars Dr (TZS) Cr (TZS)
Purchases ledger960 56,900
Sales ledger 97,550 480

The following transactions take place during 2020:

Total purchases 194,000
Total sales 251,000
Cash purchases 6,000
Cash sales 5,000
Returns inward 500
Returns outward 900
Bills received 7,000
Bills dishonoured 1,000
Bills payable to creditors 6,500
Noting charges on dishonoured bills 50
Payments to creditors 110,000
Receipts from cash and credit sales 180,000
Receipts from bad debts recovered 2,000
Bad debts written off 5,500
Increase in provision for bad debts 1,500
Refunds of credit customers' overpayments 700
Refunds given to cash customers 330
Allowances to trade debtors on goods damaged 900
Interest charged to customers 200
Cash received in respect of debit balances in purchases ledger 600
Balance in the sales ledger set off against balance in the purchases ledger 2,500

Balances at 31st December 2020 included:

Sales ledger T.shs 1800 Cr.
Purchases ledger 760 Dr.

Required:
Prepare the sales ledger control account and the purchases ledger control account.


  • Updated: 18 Jul 20
  • |
  • Attempts: 0
  • |
  • Correct: 0

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Total debtors balance:
QUESTION THREE

Nyanjilinji Ltd keeps control accounts for the purchases and sales ledgers. The following details were extracted from the books for the month of March 2020:

T.shs
Balances on 1 March 2020:
- Purchases ledger - debit 2,000
- Purchases ledger - credit 50,000
- Sales ledger - debit 90,000
- Sales ledger - credit 5,000
Goods purchased on credit 190,000
Discounts allowed 3,000
Bad debts written off 2,000
Goods returned to suppliers 6,000
Discounts received 2,500
Cash received from credit customers 240,000
Legal expenses charged to customers 1,200
Provision for bad and doubtful debts 3,000
Total sales 390,000
Cash paid to creditors 160,000
Cash sales 115,000
Sales ledger credit balances on 31 March 2020 3,700
Purchases ledger debit balances on 31 March 2020 1,400

You are Required to:
Prepare control accounts for the month ended 31 March 2020 for the purchases ledger and for the sales ledger


  • Updated: 18 Jul 20
  • |
  • Attempts: 2
  • |
  • Correct: 2

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Total Sales Ledger balance [DR]:
QUESTION FOUR

Mgala Designers Ltd. maintains its credit customer accounts on daily basis. The following details refer to transactions during the month ended 21st June 2018:

T.shs
Debit balances at 22nd May 2018 130,000
Credit balances at 22nd May 2018 6,000
Allowances given against disputed debts 2,000
Credit Sales during the month 1,200,000
Irrecoverable balances transferred to Bad Debts account 8,000
Balances referred to Debt Collectors 12,000
Cash and cheques received during the month 900,000
“Service Charges” added to unpaid accounts 13,000
Credit Notes issued during the month in respect of sales goods returned by customers 40,000
Dishonoured cheques 7,000
Cash refunds to customers 4,900
Confirmed credit balances on customer accounts at 21st June 2018 4,500

Required:
Write up the Control Account of the Debtors ledger.


  • Updated: 18 Jul 20
  • |
  • Attempts: 0
  • |
  • Correct: 0

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Total Debtors Ledger balance [DR]:
QUESTION FIVE

Ngangamero Ltd. includes in its accounting system a purchases ledger control account and a sales ledger control account. The company’s trial balance at 30 November 2019 included the following entries:

Dr. Cr.
Purchases ledger control account 1,200 24,000
Sales ledger control account 39,000 1,200

The following is a summary of the company’s transactions with its suppliers and customers during the year ended 30 November 2020:

T.shs
Goods purchased and received form suppliers:
- Gross invoice value before trade discounts 210,000
- Net invoice price after trade discounts 176,000
Goods returned to suppliers:
- Gross invoice value before trade discounts 16,000
- Net invoice price after trade discounts 15,000
Amount due to suppliers:
- Total full amount 163,000
- Settled by payment of 159,400
Goods sold to customers:
- Gross invoice value before trade discounts 344,700
- Net invoice price after trade discounts 310,000
Goods returned from customers:
- Gross invoice value before trade discounts 7,600
- Net invoice price after trade discounts 6,700
Amount due from customers:
- Full amount 307,610
- Settled by receipt of 306,500
Customers debts written off as irrecoverable 970

You are Required to:
Prepare control accounts for the month ended 30 November 2020 for the purchases ledger and for the sales ledger


  • Updated: 18 Jul 20
  • |
  • Attempts: 1
  • |
  • Correct: 0

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Total Debtors Ledger balance [DR]:
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