Produce an adjusted purchases ledger account, Financial Accounting


Andrew Hegel manufactures garments in his Malagasy Factory. In an effort to remain competitive he continually switches between suppliers.. This has resulted in extra work for the Purchases ledger clerk who has to use a control account in order to keep control of the purchases ledger. At the end of July 20X1, the balance on the purchases ledger control account was $32,190. However, the total amount of creditors according to the purchases ledger was $32,040. The ledger clerk was instructed to carry out a check on the book keeping and, as a result, the following five errors were discovered:

- Error 1 The purchases day book was undercast by $1,000.
- Error 2 A contra entry for $650 with the sales ledger had been recorded twice in the control account.
- Error 3 Credit balances of $1,800 had been omitted from the list of creditor balances from the purchases ledger.
- Error 4 Andrew Hegel had recorded returns outwards for $2,000 but the supplier then refused to accept the goods which were sent back to him. This had gone unrecorded.
- Error 5 A return to M. Osman for $3,600 was made but not recorded at all in the ledger.

(a) Analyse the errors and decide how they should be corrected.

(b) Produce an adjusted purchases ledger account for Andrew Hegel.

(c) Determine and show the revised creditors balance for Andrew Hegel.

Posted Date: 10/30/2013 6:20:05 AM | Location : United States

Related Discussions:- Produce an adjusted purchases ledger account, Assignment Help, Ask Question on Produce an adjusted purchases ledger account, Get Answer, Expert's Help, Produce an adjusted purchases ledger account Discussions

Write discussion on Produce an adjusted purchases ledger account
Your posts are moderated
Related Questions
BFD Co has occurrence rapid growth in turnover since its formation three years ago but it has been unable to maintain net profit margin which has fallen from 19% in 2002 to 12% in

McM Cog is a supplier of industrial parts.  Most orders are received at a call center. The call center currently has 10 phone lines total, i.e., a maximum of 10 callers may be in t

A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available.                  curren

Q. What is Backup Withholding? Backup Withholding -Payers of interest, dividends and other reportable payments shouldwithhold income tax equal at a rate equal to the fourth low

Please prove that the maximum throughput of input queued switch is 0.586 when switch size N approaches infinity. Assume the incoming traffic is uniformly distributed. Please dem

CONSOLIDATED CASHFLOW STATEMENTS (IAS 7) The basic cash flow statement has been covered under Financial Accounting II. The following introduction will serve as a quick reminder.

The current stock price of IOU is $250 and has a standard deviation of 35% per year. The risk-free interest rate is 5% per year compounded continuously. Find the prices of a call a

Q. What do you mean by Grant date in Stock Option? Grant date - The date at which an employee and an employer reach a mutual understanding of key terms and conditions of a shar

A summary of Jarvis Company's December 31, 2013, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Gro