Illustration I The following information were extracted from the book of IYABO enterprises for the month of January, 2021. Particulars Debit balance in the sales ledger Debit balance in the purchases ledger Credit balances in the sales ledger Credit balances in the purchases ledger Total purchases: -Credit -Cash Total sales: -Credit -Cash Returns: -Sale -Purchases Cash received Cheque received from debtors Discount: -Received -Allowed Payment to suppliers Cheque paid to suppliers Bad debts written to trade debtors Provision for doubtful debts Bills: -Receivable -Payable Sales ledger credit balances transfer to Purchase ledger Bills payable dishonored Bills receivable dishonored Credit balances in the sale ledger Debit balance in the purchases ledger You are required to prepare: a. Debtors/Sales Ledger Control Account b. Creditors/Purchases Ledger Control Account 1 N 27,000 850 750 25,500 34,600 5,050 38,700 41,350 690 380 14,200 25,000 250 650 30,000 9,750 120 350 7500 11,900 150 220 250 420 390 Illustration II Extracts from the books of You & Me Ltd. shows the following balances for the month of January 2021. Sales ledger balances as at 1st January 2021 N9,500 st Purchases ledger balances as at 1 January 2021 N3,150 st Sales journal balances as at 31 January 2021 N55,200 st Purchases journal balances 31 January 2021 N58,800 Returns Inwards N1,200 Returns Outwards N1,450 Received cash from Customers N44,300 Discount allowed to customers N1,550 Payment to Customers N42,750 Discount received from suppliers N1,150 Bad debt written off N205 Sales ledger set off N430 Purchases ledger set off N245 On 31st January 2021, it was discovered that a supplier was paid twice in error for N195. The amount was refunded on that date. You are required to determine the sales and purchases ledger balances at 31st January 2021. 2 Illustration III From the following details, show how the purchases ledger control account and sales ledger control account will appear. Particulars N Sales ledger balance 1/12/20 Debit 2,450 “ “ “ “ Credit 390 Purchases ledger balance 1/12/20 Debit 217 “ “ “ “ Credit 1,847 Credit purchases 15,800 Credit sales 37,600 Bad debts 188 Provision for doubtful debts 245 Credit note issued 135 Debit note received 109 Interest charged on overdue account 125 Cheque from debtors 22,150 Carriage outward 180 Cash from debtors 14,000 Cheque drawn for creditors 15,500 Cash purchases 12,750 Cash sales 15,200 Discount received 683 Discount allowed 168 Returns outward 175 Returns inward 207 Bills payable 550 Bills receivable 350 Sales ledger balance 31/12/20 470 Purchases ledger balance 31/12/20 240 You’re required to prepare i. Purchases ledger control account ii. Sales ledger control account 3
