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

Methods of labour remuneration, Methods of Labour Remuneration There L...

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

What is cmmi, Capability Maturity Model Integration (CMMI) is a process dev...

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

Job costing, Job Costing This is a costing method that is applied whe...

Job Costing This is a costing method that is applied when a job or cost unit is relatively of small size, is undertaken to fit the customer's specifications and is of compara

Marginal costing from financial information for management, prepare a trad...

prepare a trading and profit and loss accounts for the period using marginal costing and absorption costing

Circle the categories of values method , You perform a travel cost study th...

You perform a travel cost study that looks at the relationship between the cost of visiting a lake (including costs of travel, value of time spent not working & any entry fees), it

Estimate the selling price and profit, Slash and Burn is a monopolist that ...

Slash and Burn is a monopolist that can sell its output at these prices and with these total costs:                    Output             Price        Total Cost

Process costing, If question (CA IPCC) is silent which method to follow: av...

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

Emu Manufacturing produces two popular toys - Blox and Shape, Blox ($) Sha...

Blox ($) Shapez ($) Direct material per unit 10 23 Direct labour per unit 19 32 Manufacturing overhead per unit 7 10 Selling & Admin. expenses per unit 17 31 T

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