- 15 Marks
FA – Nov 2024 – L1 – Q2a – Preparation of Partnership Accounts
Prepare receivables and payables control accounts and identify books of prime entry for specific transactions.
Question
At the close of business on 31 July 2023, the following balances were extracted from the books of Akrowa, a limited liability company:
| GH¢ |
|---|
| Receivables Ledger Control Account |
| Payables Ledger Control Account |
During August 2023, the following transactions occurred:
| Transaction | GH¢ |
|---|---|
| 1) Cash received from customers | 63,600 |
| 2) Cash paid to suppliers | 65,000 |
| 3) Sales on credit | 96,400 |
| 4) Purchases on credit | 73,000 |
| 5) Sales returns | 3,800 |
| 6) Purchase returns | 1,400 |
| 7) Discounts received from suppliers | 800 |
| 8) Settlement discount claimed by customer unexpectedly | 600 |
| 9) Irrecoverable debts written off | 5,400 |
| 10) Customer and supplier accounts settled by contra | 4,200 |
Required:
i) Prepare the Receivables Ledger Control Account and Payables Ledger Control Account for August 2023 and determine the balances at 31 August 2023.
ii) Identify the book of prime entry from which each of the transactions (1) to (10) originated.
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