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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