Answer to Question #212203 in Accounting for Jane

Question

The following information was extracted from the financial records of Ace Wholesalers for the month of March 2021: Details R Totals at 1 March 2021: List of debtors - debit balances 63 820 List of debtors - credit balances 1 450 creditors - credit balances 48 900 Transactions for the month ended 31 March 2021: Goods sold to customers for cash 463 700 Goods sold to customers on credit 229 640 Cash received from debtors 218 270 Goods bought from suppliers for cash 172 420 Goods bought from suppliers on credit 152 300 Cash paid to creditors 128 500 Credit notes granted to debtors for goods returned by them 24 770 Credit notes received from suppliers for goods returned to them 27 040 Interest charged on overdue debtors' accounts 2 630 31 March 2021: Total of credit balances in the Debtors' subsidiary ledger 890 Required: Prepare the following for Ace Wholesalers for the month ended 31 March 2021: Debtors' control account Creditors' control account

Answer 1

Solution:

The debtors control account and creditors control account are as below:

Note that, Goods bought from suppliers for cash and goods sold to customers for cash are not recorded in either the debtors control account and creditors control account as they do not affect the accounts.