Answer to Question #232683 in Economics for nat

Question

2.2 REQUIRED

Prepare the correct Creditors Control account for May 2020 after taking into account the additional

information, errors and omissions. Balance the account. (10)

INFORMATION

The Creditors control account given below was extracted from the records of Oyster Traders for May

2020 before the additional information, errors and omissions provided were considered:

Additional information, errors and omissions

1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger.

2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6

400 instead of R4 600.

3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000.

4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the

Purchases Returns Journal, R1 000.

5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50

Answer 1

1 account payable credit 300 account receivable 300

2 Purchases debit 200; Account payable credit 200

3 Account payable credit 5 000 equipment debit 5 000

4 account receivable credit 1 000 inventory debit 1 000

5 Bank account credit 50 interests debit 50