Control Account

Trade receivables and Trade payables Control Account

Question 1

The following information has been extracted from the books of Zhou Guanyu:
Balance at 1 March 2020:
$
Trade receivables 88,456
Trade payables 28,923

Transactions for the month of March 2020:

Credit sales 46,520
Cash sales 3,560
Cheque payments to credit suppliers 12,875
Credit purchases 15,385
Goods returned by credit customers 526
Cash purchases 240
Cash received from credit customers 150
Discount allowed 732
Goods returned to credit suppliers 232
Irrecoverable debts written off 420
Discount received 285
Direct debit payments made to credit suppliers 1,648
Cheques received from credit customers 42,188
Credit transfers from credit customers 2,597
Petty cash payments made to credit suppliers 84

Required
Prepare, for the month of March 2020, the:
(i) Trade receivables Control Account
$ $

(ii) Trade payables Control Account.

$ $
Question 2
Verstappen prepared the following incorrect trade payables ledger control account for the year ended 31 July 2018.
Trade Payables Ledger Control Account
Date Details $ Date Details $
1 August 2017 Balance b/d 8,240 31 July 2018 Credit purchases 75,386
31 July 2018 Cash book 74,114 Cash book/discount received 814
Purchase returns day book 1,424
Balance c/d 4,730
82,354 82,354
All purchases were on credit. Goods were sold with a 60% profit margin.
Verstappen provided the following information for the year ended 31 July 2018.
1 August 31 July
2017 2018
$ $
Cash in hand 100 150
Inventory 19,900 6,506
Trade receivables 11,385 12,225
Received from credit customers 194,200
Cash takings banked 18,100
Cash drawings 5,200
(a) Prepare a corrected trade payables ledger control account for the year ended 31 July 2018. Balance the
account on that date and bring the balance down on 1 August 2018.
Trade Payables Ledger Control Account
Details $ Details $

(b) Calculate for the year ended 31 July 2018:

(i) credit sales
(W1) Trade Receivables Ledger Control Account
Details $ Details $

(ii) cash sales

(W2) Cash Account
2017 Details $ 2017 Details $
(iii) gross profit.

(c) Prepare the statement of profit or loss for the year ended 31 July 2018 showing the trading section only.
Verstappen
Statement of profit or loss for the year ended 31 July 2018
$ $