Question

In: Accounting

On 1 September the balance of the Accounts Receivable control account in the general ledger of...

On 1 September the balance of the Accounts Receivable control account in the general ledger of Whelan Company was $11 960. The customer's subsidiary ledger contained account balances as follows: Jana $2 440, Kingston $2 640, Johnson $2 060, Phillips $4 820. At the end of September the various journals contained the following information.

Sales journal: Sales to Phillips $800; to Jana $1 260; to Simons $1 030; to Johnson $1 100.
Cash receipts journal: Cash received from Johnson $1 310; from Phillips $2 300; from Simons $380; from Kingston $1 800; from Jana $1 240.
General journal: An allowance is granted to Phillips $220.

Instructions

(a) Set up control and subsidiary accounts and enter the beginning balances. Do not construct the journals.
(b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) Leave the cells blank if no amount is to be debited or credited.

(c) Prepare a list of customers/debtors and prove the agreement of the controlling account with the subsidiary ledger as at 30 September 2012.

Solutions

Expert Solution

Accounts Receivable
Date Particulars Amt. Date Particulars Amt.
1st Sep Balance b/d      11,960 Jana         2,440
Jana         2,460 Kingston         2,640
Kingston            840 Jhonson         2,060
Jhonson         1,850 Philips         4,820
Philips         3,100    
Simons            650 Balance c/d         8,900
     20,860      20,860
Jana
Date Particulars Amt. Date Particulars Amt.
1st Sep Accounts Receivable         2,440 Cash         1,240
Sales         1,260                -  
Accounts Receivabe         2,460
        3,700         3,700
Kingston
Date Particulars Amt. Date Particulars Amt.
1st Sep Accounts Receivable         2,640 Cash         1,800
               -  
Accounts Receivabe            840
        2,640         2,640
Johnson
Date Particulars Amt. Date Particulars Amt.
1st Sep Accounts Receivable         2,060 Cash         1,310
Sales         1,100                -  
Accounts Receivabe         1,850
        3,160         3,160
Philips
Date Particulars Amt. Date Particulars Amt.
1st Sep Accounts Receivable         4,820 Cash         2,300
Sales            800 Debtors Allowance            220
Accounts Receivabe         3,100
        5,620         5,620
Simons
Date Particulars Amt. Date Particulars Amt.
Sales         1,030 Cash            380
               -  
Accounts Receivabe            650
        1,030         1,030
List of Customers
S.No. Name Control Account Subsidiary Ledger
1 Jana 2460 2460
2 Kingston 840 840
3 Jhonson 1850 1850
4 Philips 3100 3100
5 Simons 650 650

ekkarill92 answered 5 months ago
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