Lucas is a trader. He has supplied the following details.
Balances at 1 January 2023:
Sales ledger control account: $14 940 debit
Purchases ledger control account: $8450 credit
Totals for January 2023:
Credit sales 12 736
Cash sales 3992
Credit purchases 7325
Returns to credit suppliers 463
Returns from credit customers 920
Cash received from credit customers 685
Bank transfers received from credit customers 10 620
Bank payments to credit suppliers 6675
Irrecoverable debts written off 140
Discount received 210
Contra entries 180
Interest charged on overdue purchases ledger accounts 166
(a)[6]
Prepare the sales ledger control account for January 2023. Balance the account and bring down the balance at 1 February 2023.
(b)[7]
Prepare the purchases ledger control account for January 2023. Balance the account and bring down the balance at 1 February 2023.
(c)[2]
State two advantages of preparing control accounts.
(d)[5]
Advise Lucas whether he should sell this office equipment in order to pay the supplier. Justify your answer.
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