Construct two statements to reconcile the balances

Assignment Help Accounting Basics

Reference no: EM132799433

Question - On 31 December 2019, the sales ledger control and purchases ledger control accounts of Gandalf Fireworks Trading showed the following balances:

Sales ledger control account RM23,456

Purchase ledger control account RM12,345

The above balances, however, could not match with the balances in sales and purchases ledgers as follow:

Sales ledger RM29,036

Purchase ledger RM12,226

After a round of investigation, it was found that the discrepancies were caused by the following errors and omissions:

(1) Total of the Sales Return Journal was overcast by RM1,500.

(2) Aragorn, a debtor who has an outstanding balance of RM998, appeared in the debtors' schedule as RM988.

(3) A bad debt of RM1,120 was written off as RM1,210 in the general ledger.

(4) A credit note worth RM99 sent to a creditor was omitted from his personal account.

(5) A contra entry amounted to RM4,000 was missing from the sales ledger.

(6) The purchases ledger control account has an overstated opening balance of RM20.

Required -

(i) Construct the adjusted sales ledger control and purchases ledger control accounts as at 31 December 2019.

(ii) Construct TWO (2) statements to reconcile the balances in control accounts and the balances in sales and purchases ledgers as at 31 December 2019.

Reference no: EM132799433

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