Prepare the purchases ledger control account, Cost Accounting

Assignment Help:

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.


Related Discussions:- Prepare the purchases ledger control account

Business, Purchase of office supplies.

Purchase of office supplies.

The managing director is dubious , A  firm of printers  is contemplating  j...

A  firm of printers  is contemplating  joining  the uniform  costing  system operated by  its Trade Association but the Managing Director is dubious about the benefits of becoming

Prepare the general journal entry to record this requisition, Erlander Comp...

Erlander Company uses a job order cost accounting system. On November 1 2013, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepar

Internal users of accounting information, Describe the ways in which the ne...

Describe the ways in which the needs of internal and external users of accounting information are the same and different.

Calculate the cash flow - capital cost, A company is evaluating the followi...

A company is evaluating the following lease or buy option.  A four year lease with annual payments of $25,000 payable at the beginning of the year. The tax shield is available a

Ledger accounting system, Q. Is it possible to execute fca in the deficienc...

Q. Is it possible to execute fca in the deficiency of a general ledger accounting system ? Ans. Yes. FCA can be executed for whichever solid waste management system and whi

Absorbtion, when one firm purchase other and take over its all assets.balan...

when one firm purchase other and take over its all assets.balance sheet of absorbed firm shows goodwill,should we goodwill as well?

Stores layout and location - material handling, Stores layout and location ...

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

Determine the current price of shares, 2. Blue-Jay Sporting Goods is a star...

2. Blue-Jay Sporting Goods is a start-up company that expects to earn $3.00 per share next year. Since the firm currently retains 100 percent of earnings to finance future grow

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