Prepare the purchases ledger control account, Cost Accounting

You work for a firm of accountants as a junior accounts assistant and part of your role is to prepare clients' ledgers accounts from incomplete records.

A client of the firm you work for is Mr Payne, a sole trader, trading as home wares, selling domestic household goods.

You have the following information for the year ended 31 March 2012:

Day book summaries:

Goods
£

VAT
£

Total
£

 

Balances as at:

31 March 2011

£

31 March 2012

£

Sales returns

Sales

Purchases returns

3,000

156,375

 

1,500

600

31,275

 

300

3,600

187,650

 

1,800

 

Trade receivables

Trade payables

VAT balance (Cr)

18,000

10,700

4,335

18,725

12,000

To find

Purchases

104,950

20,990

125,940

 

 

 

 

Note: All sales and purchases are on credit terms

 

 

 

 

 

Further information:

Net
£

VAT
£

Total
£

 

 

Office expenses

4,500

900

5,400

 

 

Note: Office expenses are not included in the purchases day book amount

 

 

 

Bank summary

Dr £

 

Cr £

Balance b/d

8,120

Motor and travel expenses

2,350

Trade receivables

180,600

Office expenses

6,432

 

 

VAT paid to HMRC

7,526

 

 

Drawings

24,110

 

 

Wages expenses

12,888

 

 

Trade payables

Balance c/d

121,224

14,190

 

188,720

 

188,720

(a) Using the figures given from the information above, prepare the purchases ledger control (trade payables) account for the year ended 31 March 2012. Show clearly cash discounts as the balancing figure.

(b)Using the figures given in the information above, prepare the sales ledger control (trade receivables) account for the year ended 31 March 2012. Show clearly cash discounts as the balancing figure.

(c) Using the figures given in the information above, prepare the VAT control account for the year ended 31 March 2012. The balance c/d must be the missing figure.

Posted Date: 2/16/2013 3:10:50 AM | Location : United States







Related Discussions:- Prepare the purchases ledger control account, Assignment Help, Ask Question on Prepare the purchases ledger control account, Get Answer, Expert's Help, Prepare the purchases ledger control account Discussions

Write discussion on Prepare the purchases ledger control account
Your posts are moderated
Related Questions
Determine why  JIT, TQM and AMTs may not always be entirely compatible with  the practice of standard costing.

XYZ Pvt Ltd is a private company incorporated in Australia, and manufactures handbags. The opening balance of XYZ Pvt Ltd's franking account on 1 July 2010 was $nil. During the 201

Cost Element Stage 1. Cost Elements The raw data concern with Labour, Expenses, and Materials are gathered from Invoices, Payroll, and Requisitions and Goods Issued Notes

Labour Costs Definition of Labour Cost A labour cost refers to all the costs incurred in compensating the human resources used in the production process to provide a us

Valuation of Inventory or Closing and Issues Stocks Valuation of inventory aims on attaching a monetary value in the issued or stores for production. It is useful in producing

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

Radovilsky's Department Store in Haywood, California, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one li

Gustav Ltd commenced operations on 1 July 2011 and presents its first statement of comprehensive income for the year ending 30 June 2012 and first statement of financial position a

Facts:   James (age 58, SS# 123-34-4439) and Martha (age 56; SS# 233-23-9050) Williams are married. James works at a major retailer as manager of the early shift. Martha is a nu

What depreciation method does Amazon use for property and equipment? What is the range of useful lives for buildings and for fixtures and equipment? Do these useful lives make sens