Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question:
The following information was extracted from the books of William Noel for the year ended 30 April 2009. Rs Purchases Ledger Balance as at 1 May 2008 43120 Credit purchase for the year 824 140 Credit purchases returns 12 400 Cheques paid to creditors 745 980 Cash purchases 8 940 Discount received on credit purchases 31 400 Credit balances transferred to sales ledger accounts 5 210
The total of the balances in Noel's purchases ledger amounts to Rs 67 660, which does not agree with the closing balance in the Control account.
The following errors were then discovered:
1. Discount received had been overstated by Rs 1 000. 2. A credit purchases invoice for Rs 2 040 had been completely omitted from the books. 3. The purchases ledger account had been understated by Rs 100. 4. A credit balance of Rs 850 in the purchases ledger had been set off against a contra entry in the sales ledger, but no entry had been made in the control accounts. 5. A payment of Rs 1 450 had been debited to the creditor's account but was omitted from the bank account. 6. A credit balance of Rs 3 210 had been omitted from the list of creditors.
Required:
a. Prepare a Purchases Ledger Control Account for the year ended 30 April 2009.
b. Explain why it is useful to maintain a control account in respect of both trade receivables and trade payables.
c. Explain briefly how a contra entry might arise.
Business start up accounting transactions: Jane Whitfield, a sole proprietor, established the JW Flower Shop on January 2, 2010. The following transactions have occurred during
What are the Advantage of limited liability Advantage of limited liability, though, imposes certain obligations on such companies. To start up a limited company, documents of i
On December 1, 2013, Colonel Wilder borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivable as collateral. Additionally, Colonel Wilder was charged a finance
OTHER ASPECTS OF THE CONSOLIDATED BALANCE SHEET The consolidated balance sheet may require a special approach under the following situations: 1) Pre-acquisition losses in subs
Lockheed Martin's management wishes to find out whether they have excess debt capacity. Its current market value of equity is $40 b and its book value of debt is $
how do we calculate bonus issu4 and rights issue
Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 0.55*(8% - 1%)
1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr
Illustration for preparing final accounts K Ltd established a branch in Arusha Tanzania on 1.1.X2, when Kshs 1 = TShs 15. PPE costing Kshs 800,000 were purchased on that day. I
When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd