Debtors and Creditors Ledger Question

Q: Please prepare the debtors and creditors ledger control account for the following:

Debtors (1/1/10) 150,000
Creditors (1/1/10) 45,000
Bad debt 2,200
Discount Received 2,500
Cash Received from debtors 115,000
Cheque Receipt from debtors 5,000
Set off 1,200
Discount Allowed 1,150
Credit Sales 25,000
Credit Purchases 12,000
Cash payment to creditors 18,000
Cheque payment to creditors 11,200
Understated Credit sales 1,500
Overstated cash receipt from debtors 2,000
Return Inward 1,300
Return Outwards 1,600
Overstated Cheque payment to creditors 1,000

Here are the debtors and creditors control accounts:

debtors control account

creditors control account

All transactions have been assumed to have taken place in the month of January 2010.

For more information on debtors and creditors control accounts see my
lesson on debtors and creditors control accounts .

Note that this question covers some advanced subjects such as returns (inwards and outwards) as well as bad debts. I don't cover these topics on my site. Only in my
basic accounting books . Consider purchasing them if you need more info on these topics.

Hope you enjoyed the solutions here!


Comments for Debtors and Creditors Ledger Question

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Debtors Control Account
by: Sma

On which side of the debtors control account can I record the following transactions:

1) Discount allowed on dishonored cheques
2) Cash refund to customers

Off sets
by: Anonymous

How are off sets treated in control accounts?

control accounts
by: Anonymous

understated credit sales u record it on the debit side of the control accnt and overstatement of cash receipts is also on the debit side since the account will increase

under and over cast
by: Anonymous

hi, how do we treat an under and overcast in control accounts

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