Create a trade receivables ledger control, Financial Accounting

Assignment Help:

Problem:

(a) Many businesses find it useful to maintain a control account in respect of both their trade receivables and trade payables. Describe why such control accounts are useful.

(b) The subsequent information relates to March 2009:

On 1st March 2009, the balances in the trade receivables ledger were Rs 348,560 Dr and Rs 12,800 Cr.

During the month of March 2009 the given transactions took place:

1. Sales were Rs 598,200 (85% of which were on credit terms).
2. Sales returns from credit customers totalled Rs 18,240.
3. Cheques for Rs 394,250 were received from credit customers; Rs 32,832 of this amount had been received subject to 4% cash discount.
4. Customers' cheques for Rs 4,650 were dishonoured by the bank.
5. 4% cash discount had been allowed in respect of one of these cheques for Rs 1,920.
6. Rs 5,400 had been set off by contra in the trade payables ledger.

Credit balances in customers' account as at 31st March 2009 amounted to Rs 11,400

Required:

Create a Trade Receivables Ledger Control Account for the month of March 2009.


Related Discussions:- Create a trade receivables ledger control

A prior period adjustment, Q. A prior period adjustment that corrects incom...

Q. A prior period adjustment that corrects income of a prior period requires that an entry be made to a. an income statement account. b. a current year revenue or expense account.

Break-even ebit, Break-Even EBIT: Rolston Corporation is comparing two ...

Break-Even EBIT: Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Rolston would have 1

Determine the lifo cost, Determine the LIFO cost Toys "R" Us purchases ...

Determine the LIFO cost Toys "R" Us purchases inventory in crates of merchandise; each unit of inventory is a crate of toys. The fiscal year of Toys "R" Us ends each January 31

Prepare a lease amortization schedule, LessorMfg Corp. is a manufacturer of...

LessorMfg Corp. is a manufacturer of heavy equipment. On January 1, 2013, LessorMfg Corp. leases equipment to Small Company under a six-year noncancelable lease agreement. The foll

A Review of the Role of Financial Reporting in the Global Fi, Could you ple...

Could you please read this article? I am confused what the shortcoming of this critical review.

International financial reporting standards and gaap, Alta Velocidad Espera...

Alta Velocidad Esperanza de L'Argentina, Sociedad Anónima (AVE), a high-speed railway operator domiciled in Rio Norte, Argentina, is a Foreign Private Issuer as defined by the U.S.

Perpetual inventory system, In this type of system store balances are recor...

In this type of system store balances are recorded and computed after all receipt and issue. The main focus of this system is to make obtainable details regarding the quantity and

Stock exchange., #define stock exchange? mention the SEBI guideline pertain...

#define stock exchange? mention the SEBI guideline pertaining to the functioning of stock exchange? question..

Prepare journal entries to record the transactions, On January 1, 2010, And...

On January 1, 2010, Anderson Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued

Illustration of change in profit sharing ratio, Illustration of change in p...

Illustration of change in profit sharing ratio A, B and C have been trading as equal partners having capital contributions of £400,000, £300,000 and £200,000 respectively. They

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd