Prepare the purchases ledger control account, Cost Accounting

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You work for a firm of accountants as a junior accounts assistant and part of your role is to prepare clients' ledgers accounts from incomplete records.

A client of the firm you work for is Mr Payne, a sole trader, trading as home wares, selling domestic household goods.

You have the following information for the year ended 31 March 2012:

Day book summaries:	Goods £	VAT £	Total £	Balances as at:	31 March 2011 £	31 March 2012 £
Sales returns Sales Purchases returns	3,000 156,375 1,500	600 31,275 300	3,600 187,650 1,800	Trade receivables Trade payables VAT balance (Cr)	18,000 10,700 4,335	18,725 12,000 To find
Purchases	104,950	20,990	125,940
Note: All sales and purchases are on credit terms

Further information:	Net £	VAT £	Total £
Office expenses	4,500	900	5,400
Note: Office expenses are not included in the purchases day book amount

Bank summary	Dr £		Cr £
Balance b/d	8,120	Motor and travel expenses	2,350
Trade receivables	180,600	Office expenses	6,432
		VAT paid to HMRC	7,526
		Drawings	24,110
		Wages expenses	12,888
		Trade payables Balance c/d	121,224 14,190
	188,720		188,720

(a) Using the figures given from the information above, prepare the purchases ledger control (trade payables) account for the year ended 31 March 2012. Show clearly cash discounts as the balancing figure.

(b)Using the figures given in the information above, prepare the sales ledger control (trade receivables) account for the year ended 31 March 2012. Show clearly cash discounts as the balancing figure.

(c) Using the figures given in the information above, prepare the VAT control account for the year ended 31 March 2012. The balance c/d must be the missing figure.

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