ACCOUNTI
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Gr
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Chapter7
RECONCI
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CONTROLACCOUNTS
Wor
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ACTIVITY 1
REQUIRED:
Re-do the Debtors’ Control Account and the Debtors’ list, considering all the information so that the two
will be reconciled.
INFORMATION:
You are provided with information from records of JT Traders for the month ending July 2022. Below you
will find the Debtors’ Control Account and the Debtors’ list. The Balance of the Control Account and the
total of the list do not agree.
DEBTORS’ CONTROL ACCOUNT
2022 2022
July 1 Balance b/d 15 388 July 31 Bank and Discount Allowed CRJ 7 880
31 Bank CPJ 600 Balance c/d 16 996
Sales DJ 8 888
24 876 24 876
Jun 1 Balance b/d 16 996
DEBTORS’ LIST
Debit Credit
G Smith 4 146
A Brown 2 365
C Black 4 380
L White 4 145
15 036
Accounting – Grade 10 Chapter 7 Reconciliations All Rights Reserved.
Additional information
• G Smith’s account was undercast by R1 000. (Correct the adding)
• An invoice sent to C. Black for R400 has not yet been entered. (Missing from the Journal therefore
must be entered in both)
• The Debtor’s Journal was undercast by R500. (Error in Totaling therefore only the Control Account
must be corrected.)
• An invoice for R700 sent to A. Brown for goods sold, had been entered in the Debtors’ Journal but
had not been posted to A. Brown’s account. (post to A. Brown’s account)
• The bookkeeper had forgotten to post the Total of R760 in the Debtors’ Allowances Journal to the
Debtors’ Control Account. (Enter in the Debtors’ Control Account)
©
Balance sheet section
DEBTORS’ CONTROL ACCOUNT
DEBTORS’ LIST
Debit Credit
©
ACTIVITY 2
REQUIRED
Use the information below to reconcile the Creditors’ Control Account with the Creditors’ List.
INFORMATION:
Opening Balances:
Creditors’ Control R19 940
Creditors’ List R19 260
Transactions:
1 An invoice for R1 760 has not yet been entered in the Creditors’ Journal.
2 Discount of R120 had not been entered on the account of a creditor, J Smith.
3 A debit note for R3 200 had not been entered in the Creditors’ Allowance Journal.
4 The Creditors’ journal had been undercast by R300.
5 The Creditors’ List had been undercast by R1 000.
6 The opening balance of the Creditors’ Control Account had been overcast by R100.
ANSWER USING THE TABLE FORMAT BELOW
No Creditors’ Control List of Creditors
Dr Cr Dr Cr
Balance
TOTAL
BALANCE
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Activity 3: CONTROL ACCOUNTS
The following information appeared in the books of DEJ Traders on 31 July 2022.
Required:
3.1 Calculate the correct balance of the Debtors’ Control Account in the General Ledger. Show all your
calculations.
3.2 Prepare an adjusted Debtors’ List, after the errors and omissions have been taken into account.
3.3 List TWO internal control procedures that must be applied in a business to maintain proper
control over debts.
GENERAL LEDGER OF DEJ TRADERS
BALANCE SHEET ACCOUNTS SECTION
DEBTORS’ CONTROL CA
2022 2022 Bank & Discount
1 Balance b/d 18 130 31 CRJ 13 200
July July Allowed
Debtors’
31 Sales DJ 24 400 DAJ 1 750
Allowances
Journal Debits GJ 3 400 Journal Credits GJ 900
Balance c/d 30 080
45 930 45 930
2022
1 Balance b/d 30 080
Aug
Debtors’ List on 31 July 2022 Debit Credit
B Bruner 2 971
K Daily 5 600
F Frylinck 3 000
N Mustafa 8 200
J Kim 6 029
19 800
©
Additional information, errors and omissions
1. Assume that the opening balance of the Control Account on 1 July 2022 is correct.
2. The Debtors’ journal was undercast by R2 600.
3. A Payment of R1 500 received from M Mustafa was posted to the account of J Kim in error.
4. An invoice for R950 in the Debtors’ Journal was posted to the Account of M Mustafa as
R590.
5. A credit note of R350 was recorded correctly in the Debtors’ Allowance Journal, but posted
as R530 in account of K Daily.
6. An invoice issued to B Bruner for R6 400 was posted on the wrong side.
7. F Frylinck’s credit balance of R3 000 should be transferred to her account in the Creditors’
Ledger. No entry was made of this.
8. Interest of R150 must still be brought into account on overdue account of B Bruner.
9. Discount of R460 was correctly entered in the CRJ but it was left out with posting to K
Daily’s account.
GENERAL LEDGER OF DEJ TRADERS
BALANCE SHEET ACCOUNTS’ SECTION
DEBTORS’ CONTROL CA
©
Debtors’ List on 31 July 2022 Debit Credit
B Bruner
K Daily
F Frylinck
N Mustafa
J Kim
3.3 List TWO internal control procedures that must be applied in a business to maintain
proper control over debts
©
ACTIVITY 4 DEBTORS’ RECONCILIATION AND INTERNAL CONTROL
The following information was extracted from the accounting records of DEBRIM Dealers
for August 2022.
At the end of the month, the Debtors’ Control Account and Debtors’ List could not be
reconciled. As the internal auditor of DEBRIM Dealers you were asked to help with the
reconciliation process.
REQUIRED
4.1 Prepare the correct Debtors’ Control Account.
4.2 Prepare the correct Debtors’ List for August 2022
4.3 By making reference to transaction no.1 mention TWO control measures that should be
implemented by the business before they can grant credit to customers.
4.4 Name TWO ways in which you can encourage debtors to pay their accounts on time.
GENERAL LEDGER OF DEBRIM DEALERS
BALANCE SHEET ACCOUNTS SECTION
DEBTORS CONTROL CA
2022 2022 Bank & Discount
1 Balance b/d 24 570 31 CRJ 46 410
Aug Aug Allowed
31 Sales DJ 62 670 Debtors Allowances DAJ 24 630
Journal Debits GJ 8 600 Journal Credits GJ 2 310
Balance c/d 22 490
95 840 95 840
2017
1 Balance b/d 22 490
April
Debtors List on 31 July 2022 Debit
S Van Greunen 4 920
K Brimcombe 5 810
J De Meillon 9 450
P Lombaard 3 710
23 890
©
The following errors and omissions were discovered:
1. K Brimcombe’s account has to be written off as he cannot be traced.
2. A payment received from S van Greunen for R2 600 was recorded correctly in the journal and the
General Ledger but was not posted to her personal account.
3. The total of the Sales column in the Debtors’ Journal was overstated by R3 320 while the total of
the Debtors’ Allowance column in the Debtors Allowance Journal was understated by R390.
4. P Lombaard returned goods to the value of R1 120 but the bookkeeper incorrectly treated this as
a credit sale and posted it accordingly.
5. Goods were sold on credit to J De Meillon for R3 550. This was entered correctly in the journal
and the General ledger but was posted to her account as R3 050.
6. A payment of R700 which was received from P Lombaard was in payment of his account of R770.
The bookkeeper neglected to enter the transaction in his account.
GENERAL LEDGER OF DEBRIM DEALERS
BALANCE SHEET ACCOUNTS’ SECTION
DEBTORS’ CONTROL CA
Debtors’ List on 31 July 2022 Debit
S Van Greunen
K Brimcombe
J De Meillon
P Lombaard
©
4.3 By making reference to transaction no.1 mention TWO control measures that
should be implemented by the business before they can grant credit to customers.
4.4 Name TWO ways in which you can encourage debtors to pay their accounts on
time.
©
Activity 5: Reconciliation and internal Control
REFLECT WHOLESALER
The information below was taken from the books of REFLECT Wholesalers.
REQUIRED
5.1 Calculate the correct balance for the Debtors’ Control Account and the Debtors’ List on the 31
August 2022. Use the table provided.
5.2 Provide ONE reason why the Debtors’ Control account and the Debtors’ List should
always agree
5.3 The owner P Moyle is worried that debtors are not paying on time. List THREE measures
that he can put in place to ensure debtors pay on time.
5.4 Refer to the Debtors’ Control account and answer the following:
5.4.1 If the discount allowed was R35 720, how much was received from debtors for the month of
August?
5.4.2 Apart from interest charged, what else could appear as a journal debit? Provide
ONE item or answer.
GENERAL LEDGER OF DEBRIM DEALERS
BALANCE SHEET ACCOUNTS SECTION
DEBTORS CONTROL CA
2022 2022 Bank & Discount
1 Balance b/d 89 560 31 CRJ 266 040
Aug Aug Allowed
31 Sales DJ 270 000 Debtors Allowances DAJ 1 200
Journal Debits GJ 1 020 Journal Credits GJ 1 950
Balance c/d 91 390
360 580 360 580
2017
1 Balance b/d 91 390
April
©
INFORMATION:
Use the table below to record the reconciliation of the Debtors List and the Debtors’ Control Account.
Balances on the 31 August before errors and omissions:
Debtors’ Control R91 390
Total of the Debtors List R88 780
Errors and omissions discovered during the month:
A. The Debtors’ Control balance was overcast by R6 000.
B. The total column of the Debtors’ Allowance Journal was undercast with R210.
C. A credit sale invoice for R2 900 issued to Baloyi was correctly entered in the Debtors’ Journal but
was incorrectly posted to the account of Smith.
D. A credit note of R520 for Cooper was not recorded at all.
E. An EFT payment of R5 600 received from Hope in full settlement of his account of R6 000 was
recorded correctly in the subsidiary journal. However, the bookkeeper forgot to record the discount
in the account of Hope.
F. A credit note of R1 600 was correctly entered in the Debtors’ Allowance Journal, but was
incorrectly recorded as an invoice in the account of Williams.
G. Charged Baloyi R300 interest on his overdue account of R8 000. No entry has been made.
No Debtors’ Control List of Debtors
Balance
BALANCE
©
5.2 Provide ONE reason why the Debtors’ Control account and the Debtors’ List
should always agree.
5.3 The owner P Moyce is worried that debtors are not paying on time. List THREE
measures that he can put in place to ensure debtors pay on time.
5.4 Refer to the Debtors’ Control Account and answer the following:
5.4.1 If the discount allowed was R35 720, how much was received from debtors for the month
of August 2022?
5.4.2 Apart from interest charged, what else could appear as a journal debit? Provide
ONE item or answer.
