Quesrion 3 Quesrion 3 Creditors reconciliation QUESTION 3 CREDITORS RECONCILIATI

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Quesrion 3

Quesrion 3


Creditors reconciliation

QUESTION 3 CREDITORS RECONCILIATION (20) The information given below was extracted from the records of Zebro Traders for May 2017. REQUIRED 3.1 Prepare the correct Creditors Control account for May 2017. Balance the account. 3.2 Prepare the corrected Creditors List as at 31 May 2017 2 INFORMATION Credit balance in the Creditors control account on 01 May 2017 Transactions for May 2017 (excluding the additional information below Merchandise purchased on credit Merchandise purchased by cheque Cheques issued to creditors in payment of accounts and discounts received Merchandise returned to creditors Stationery purchased on account Interest charged by a creditor on an overdue account R256 500 660 600 446 400 642 7 560 14 400 270 76

Explanation / Answer

3.1 Creditor Control Account Debit Credit Payment in May $642150 May 1 2017 Balance B/D $256500 Merchandise Return $7560 Purchase on Credit $660600 Stationery Purchase $14400 Interest charged by Creditor $270 May 31 2017 Balance C/D $284760 Debit balance transfer to Creditor $2700 $934470 $934470 3.2 Corrected Creditor List Balance Given Adjustment Final Balance Union Limited 41400 0 41400 No Adjustment as adj no 2 have been posted correctly for Creditors Voltex 63180 0 63180 No Adjustment as adj no 4 have been posted correctly for Creditors Tropical Manufacture 169200 -9120+7500 167580 Adj no 3. R 9120 posted incorrect, correct to be posted is R 7500 Southgate Enterprise 30600 -9000-9000 12600 Adj no 5, payment considered as purchase Proworx 2700 -2700 0 Adj no 1, to be transferred to Debtors (Debit) Total 284760

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