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

Write a short report to the investment manager, Your company is considering...

Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet w

Numerical question, Data for 2013 were as follows: PBO, January 1, $244,000...

Data for 2013 were as follows: PBO, January 1, $244,000 and December 31, $274,000; pension plan assets (fair value) January 1, $190,000, and December 31, $233,000. The projected be

Case law about investment, If you inherited $45,000 today and invested all ...

If you inherited $45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

Investment tax credit, Investment Tax Credit - This is a component of gener...

Investment Tax Credit - This is a component of general business credit and comprises the following: 1. Energy credit 2. Rehabilitation credit 3. Reforestation credit

It is started as "the MATCHING principle is very important w, What is the r...

What is the relation of profit and matching principle? Do you have a form for this kind of assignment in writting Financial Accounting?

Calculation of internal rate of return, Q. Calculation of internal rate of ...

Q. Calculation of internal rate of return? The company is accurate in its belief that NPV measures the potential increase in company value of an investment project since theore

Effect of resolution-liquidation of companies, Effect of Resolution The...

Effect of Resolution The consequences of the resolution to wind up are: 1) The company must cease to carry on its business except so far as is necessary for the beneficial win

Creation-express trusts-trust laws and accounts, Creation An express tr...

Creation An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) It may be created in the following ways:

What is the minimal variance, Consider the expected return and standard dev...

Consider the expected return and standard deviation of the following two assets: Asset 1: E[r1]=0.1 und σ1=0.3 Asset 2: E[r2]=0.2 und σ2=0.4 (a) Draw (e.g. with Excel) the

Calculate the return on investments based on cash flow, This project allows...

This project allows you to think critically and apply decision-making management techniques. In this project,  you need to solve a bond portfolio problem, a diversified portfolio p

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