Question

Question 3

The information given below was extracted for the records of Zebro Traders for May 2017

Required.

3.1 Prepare the correct Creditors Control Account for my 2017.Balance the account. (11)

3.2 Prepare the corrected Creditors List as at 31 May 2017.

Information

Credit balance in the creditor’s control account on 01 May 2017	R 256 500
Transaction’s for May 2017(excluding the additional information below):	R
Merchandise purchased on credit	660 600
Merchandise purchased by cheque	446 400
Cheques issued to creditors in payment of accounts and discounts received	642 150
Merchandise returned to creditors	7 560
Stationery purchased on account	14 400
Interest charged by a creditor on an overdue account	270

Creditors List AS at 31 May 2017
Creditor	Debit	Credit
Union Limited Voltex Suppliers Tropical Manufactures Southgate Enterprises Proworx Wholesalers	2700	41 400 63 180 169 200    30 600
	2700	304 380

Additional Information not yet recorded.

1.       The balance in the account of Proworx Wholesalers must be transferred to their account in the Debtors ledger.

2.       A credit note received from Union Limited for Merchandise returned was not recorded in the Purchases Returns Journal. R8 100.

3.       An invoice received from Tropical Manufactures for goods purchased was correctly entered in the Purchases Journal as R7500 but erroneously posted to their account as R 9120 in the creditors Ledger.

4.       An electronic funds transfer to Voltex Suppliers in part settlement of account was not recorded in the Cash Payment Journal, R6300.

5.       A cheque to Southgate Enterprises for R9000 was correctly recorded in the Cash Payments Journal but treated as a purchase in the suppliers account in the CREDITORs ledger.

Answer 1

		creditors control account
dr						cr
Date		R	Date		R
	bank	642150	01.05.2017	balance b/f	256500
	Discount Received	18450		purchases	660600
	purchase return	7560		purchases	446400
31.05.2017	balance c/d	710010		purchases	14400
				overdue interest	270
		1378170			1378170
	Creditors List AS at 31st May 2017
	union Limited	41400
	less: debit balance	-2700
	less: Purchase Return	-8100	30600
	Voltex Suppliers	63180
	cash payment not recorded	-6300	56880
	Tropical Manufactures	169200
	Less: goods purchase wrong amount	-9120
	recorded in creditor account
	Add: goods purchase	7500	167580
	Southgate Enterprises	30600
	Less: purchase wrongly recorded	-9000	21600
	Proworx Wholesalers