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

Relevance of interdependence , Describe the meaning and relevance of interd...

Describe the meaning and relevance of interdependence of variances when reporting to managers.

Compute avoidable interest incurred during 2014, Early in 2014, Dobbs Corpo...

Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and

Target income calculations, Target Income Calculations Breaking even is...

Target Income Calculations Breaking even is not the bad thing, but surely not a satisfactory outcome for most businesses. In its place, a manager might be more interested in le

Calculate- total variable cost and average variable cost, The firm currentl...

The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm’s output is $25. The cost of other va

Calculate the monetary of the inventory, Learning Objective: After completi...

Learning Objective: After completing the project, the student will have gained familiarity, understanding and mastery of programming a realistic but simple application in Assembly

Identify the income statement and balance sheet, In January 2012, the manag...

In January 2012, the management of Stefan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the fol

Features and procedures of job costing, Features and Procedures of Job cost...

Features and Procedures of Job costing Features of Job costing Product is against the customer's order and not on job stocks. Every job has its own characteristics and ne

Find out overhead application rate, Find Out Overhead Application Rate ...

Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000

Bin card, I need an explanation of how a bin card is done

I need an explanation of how a bin card is done

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