EXERCISE 1

General Ledger of T Jacqui

Balance sheet accounts section

(a) Debtors Control Account

2009 2009
Aug 1 Balance b/d 6 000 Aug 31 Bank 7 100
31 Sales 13 400 Discount allowed 340
Sales returns 900
Creditors ledger: Set-off 1 200
Balance c/d 9 860
19 400 19 400
Sept 1 Balance b/d 9 860

Creditors Control Account

2009 2009
Aug 31 Bank 4 400 Aug 1 Balance b/d 11 400
Discount received 120 31 Purchases 6 100
Purchases returns 750 Cash 370
Debtors ledger: set-off 1 200
Balance c/d 11 400
17 870 17 870
Sept 1 Balance b/d 11 400

(b) Provide totals of debtors and creditors.

Errors concerning debtors or creditors accounts can easily be located.
Provides the summaries of the transactions relating to debtors and creditors.
Could help in detecting and tracing fraud.
 EXERCISE 2
General Ledger of Murapo Traders
Balance sheet accounts section

(a) Debtors Control Account

2020 2020
Apr 1 Balance b/d 16 000 Apr 30 Sales returns 2 400
30 Sales 34 900 Cash 10 400
Interest received 700 Creditors ledger: Set-off 1 500
Bad debts 2 000
Balance c/d 35 300
51 600 51 600
May 1 Balance b/d 35 300

Creditors Control Account

2020 2020
Apr 30 Purchases returns 1 900 Apr 1 Balance b/d 9 800
Bank 8 700 30 Purchases 21 100
Debtors ledger: Set-off 1 500 Interest paid 520
Balance c/d 19 320
31 420 31 420
May 1 Balance b/d 19 320

EXERCISE 3
Balance owed by debtors on 1 April 2016 amounted N$19 760
Balance owed to creditors on 1 April 2016 amounted N$12 740

Total credit sales for the month at 30 April 2016 was N$38 840
Total credit purchases for the month at 30 April 2016 was N$17 680
Total value of goods returned by the debtors at 30 April 2016 was N$5 460
Total EFT and debit card receipts from debtors at 30 April 2016 was N$18 720
Total EFT and debit card payments to suppliers at 30 April 2016 was N$9 620
Balances in debtors ledger set off against balances in creditors ledger were N$1 200
Total interest charged on debtors’ overdue accounts at 30 April 2016 was N$1 560
Total interest charged on creditors’ overdue account at 30 April 2016 was N$910
Total discount from suppliers for prompt payment at 30 April 2016 amounted N$715
Total refunds from suppliers by EFT at 30 April 2016 was N$880

(b) In order to set off the amount that Haingura Traders owed to specific creditors
against the same amount that these same creditors owed to Haingura Traders. OR
The entry is made when a debtors ledger account is set off against the creditors
ledger account of the same person
 EXERCISE 4
General Ledger of H Kandorovi
Balance sheet accounts section

(a) Debtors Control Account

2014 2014
Jun 1 Balance b/d 16 400 Jun 30 Bank 4 700
30 Sales 3 100 Discount allowed 500
Sales returns 1 400
Set off: Creditors ledger 980
Bad debts 130
Balance c/d 11 790
19 500 19 500
Jul 1 Balance b/d 11 790

Creditors Control Account

2014 2014
Jun 30 Bank 2 600 Jun 1 Balance b/d 17 200
Discount received 550 30 Purchases 12 700
Purchases returns 2 100
Set off: Debtors ledger 980
Balance c/d 23 670
29 900 29 900
Jul 1 Balance b/d 23 670

EXERCISE 5

Statement of corrected debtors control account of Ngenokesho Trading - June 2015

Error Increase decrease N$
Balance 29 800
1 Debtors journal overcast 1 400
2 Discount allowed omitted 500
3 Interest received 540
4 Sales returns omitted 5 400
6 Bad debts 3 500
540 (10 800) (10 260)
Corrected balance 19 540

Statement of corrected list of Debtors of Ngenokesho Trading for June 2015

Error Increase decrease N$
Total 24 700
3 Interest received 540
4 Sales returns 5 400
5 N Sakwasa/Bank 300
540 (5 700) (5 160)
Corrected total 19 540
EXERCISE 6
1 Debtors ledger is used to verify the correctness of entries in the debtors accounts
by checking its balance against the total of the debtors list. If the debtors control
account was prepared from the debtors ledger, it would not be possible to
discovered any error that might have been done in the individual debtors account.

General ledger of Rundu Enterprises – July 2018

Date Details Fol Debit Credit
1 Carton Retailers 2 100
Carton Retailers 2 100

EXERCISE 7
General Ledger of P Uiras
Balance sheet accounts section

(a) Debtors Control Account

2015 2015
May 31 Sales 4 300 May 31 Bank 800
Interest received 210 Discount allowed 220
Cash 180 Sales returns 280
Bad debts 420
Balance c/d 2 970
4 690 4 690
June 1 Balance b/d 2 970

Creditors Control Account

2015 2015
May 31 Bank 1 300 May 31 Purchases 2 100
Discount received 320 Interest paid 140
Purchases returns 410 Equipment 1 500
Balance c/d 1 710
3 740 3 740
June 1 Balance b/d 1 710

(b) Provide instant totals of debtors and creditors

Provides the summaries of the transactions relating to debtors and creditors
Could help in detecting and tracing fraud.
EXERCISE 8

Calculating amended balance of debtors control account

Incorrect balance 16 200
Add: cash refund 800
Less: debtors returns journal undercast (1 000)
Corrected balance 16 000

Calculating amended total of the debtors list

Incorrect total 17 130
Less: Discount allowed (720)
Add: total of debtor’s list undercast 490
Less: Payment from K Elhers (900)
Corrected total 16 000

NOTE: When the examiner did not give a specific format in which learners may
present the answers, then learners have the liberty of using any format to arrive at
the answer. Even if it means simply adding and subtracting numbers without details.

EXERCISE 9
General Ledger of Willy Brandberg
Balance sheet accounts section

(a) Debtors Control Account

2017 2017
Oct 1 Balance b/d 12 500 Oct 31 Bank 7 600
31 Sales 4 200 Discount allowed 320
Interest received 220 Sales returns 980
Creditors ledger: Set-off 540
Bad debts 400
Balance c/d 7 080
16 920 16 920
Nov 1 Balance b/d 7 080

Creditors Control Account

2017 2017
Oct 31 Bank 5 900 Oct 1 Balance b/d 11 700
Discount received 140 31 Purchases 3 800
Purchases returns 770 Interest paid 130
Debtors ledger: Set-off 540
Balance c/d 8 280
15 630 15 630
Nov 1 Balance b/d 82 80

(b) Contra entry in relation to control accounts refers to a situation where an entry is
recorded in both the debtors control account and the creditors control accounts.
This happens when the creditors are also the debtors of the business and it
requires a set-off to cancel the amount owed to both parties.
EXERCISE 10
(a)
Statement of corrected creditors control account of Mouers Trading – February 2018
Error Decrease Increase N$
Incorrect balance 9 880
1 Credit note omitted 750
2 Creditors total overcast 200
4 Purchases 270
(950) 270 (680)
9 200

Statement of corrected list of Creditors of Mouers Trading – February 2018

Error Decrease Increase N$
Incorrect total 9 480
1 Credit note omitted 750
3 Interest paid 600
4 Purchases 270
5 Discount not recorded 400
(1 150) 870 (280)
9 200

(b) *The Creditors control account is made up from totals of books of first entry. The
creditors list is made up from the individual creditors balances from the creditors
ledger. This total should agree with the creditors control balance.
*Adapted from NSSCO 2013 paper 2 Accounting mark scheme

EXERCISE 11
The information below relates to Angombe Wholesalers, a trading business.

Amount owed by debtors on 1 November 2014 was N$19 760

Amount owed to creditors on 1 November 2014 was N$12 740
Total credit sales for the month at 30 November 2014 was N$34 840
Total credit purchases for the month at 30 November 2014 amounted N$17 680
Total value of goods returned by the debtors at 30 November 2014 was N$5 460
Total value of goods returned to creditors at 30 November 2014 was N$3 250
Total amount received from debtors by EFT at 30 November 2014 was N$18 720
Total cash received from debtors at 30 November 2014 was N$4 200
Total EFT payments to creditors at 30 November 2014 was N$9 620
Total discount to customers for early settlement at 30 November 2014 was N$1 560
Total discount from suppliers for prompt payment at 30 November 2014 was N$715
Total interest charged on debtors overdue accounts at 30 November 2014, N$1 820
Total interest charged by creditors on our overdue accounts at 30 November 2014,
N$910
Total accounts of debtors written off at 30 November 2014 was N$2 470
 EXERCISE 12
General Ledger of Lelly Nangula
Balance sheet accounts section

(a) Debtors Control Account

2011 2011
Mar 1 Balance b/d 24 800 Mar 31 Bank 2 500
31 Sales 7 600 Discount allowed 180
Interest received 340 Sales returns 2 400
Creditors ledger (Set-off) 780
Bad debts 510
Balance c/d 26 370

32 740 32 740
Apr 1 Balance b/d 26 370

Creditors Control Account

2011 2011
Mar 31 Bank 2 000 Mar 1 Balance b/d 5 600
Discount received 130 31 Purchases 8 200
Purchases returns 1 900 Interest paid 113
Debtors ledger (Set-off) 780
Balance c/d 9 103
13 913 13 913
Apr 1 Balance b/d 9 103

EXERCISE 13

Creditors control account List of creditors

No Debit (-) Credit (+) 14 390 Debit (-) Credit (+) 11 750
1 3 600 3 600
2 3 500
3 400
4 760
5 500
6 950 950
(4 850) 4 360 (490) (1 450) 3 600 2 150
13 900 13 900
EXERCISE 14
1 Complete the table below to indicate the books first entry where we obtain
information for each of the following control accounts entries.

Control account entry Book of first entry

Sales Debtors journal
Discount received Cash book
Interest received General journal
Sales returns Debtors returns journal
Cash Cash book
Bad debts General journal
Purchases returns Creditors returns journal

2 Provide instant totals of debtors and creditors

Provides the summaries of the transactions relating to debtors and creditors
Could help in detecting and tracing fraud.

3 Preparing trial balance

Reconciling cash book balance with the balance from the bank statement