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Answers to questions

Example 4

You obtain the following information for the year ended 30 November 20X8
from the books of original entry of an entity:

Cash book
$
Discounts allowed 6,805
Cash and cheques from customers 287,601
Discounts received 3,415
Cash and cheques paid to suppliers 233,078
Customer's cheque dishonoured 251
The following totals have been extracted from the daybooks for the year:

$
Purchases daybook 247,084
Sales daybook 306,580
Sales returns daybook 6,508
Purchases returns daybook 4,720
According to the audited financial statements for the previous year,
receivables and payables as at 30 November 20X7 were $44,040 and
$63,289, respectively.

Required:

Prepare the relevant control accounts for the year ended 30 November
20X8, entering the closing balances for receivables and payables.

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