QUESTION 3

CREDITORS RECONCILIATION

(20)

The information given below was extracted from the records ofZebro Traders for May 2017.

REQUIRED

3.1

Prepare the correct Creditors Control account for May 2017.Balance the account.

3.2

Prepare the corrected Creditors List as at 31 May 2017.

INFORMATION

Credit balance in the Creditors control account on 01 May 2017 -R256 500

Transactions for May 2017 (excluding the additional informationbelow): R

Merchandise purchased on credit - 660 600

Merchandise purchased by cheque - 446400

Cheques issued to creditors in payment of accounts and discountsreceived - 642150

Merchandise returned to creditors - 7560

Stationery purchased on account - 14400

Interest charged by a creditor on an overdue account - 270

CREDITORS LIST AT 31MAY 2017	DEBIT	CREDIT
Union Limited		41 400
Voltex Suppliers		63 180
Tropical Manufacturers		169 200
Southgate Enterprises		30 600
Proworx Wholesalers	2 700
	2700	304380

Additional information not yet recorded:
1.
The balance in the account of Proworx Wholesalers must betransferred to their account in the Debtors ledger.
2.
A credit note received from Union Limited for merchandise returnedwas not recorded in the Purchases Returns Journal, R8 100.
3.
An invoice received from Tropical Manufacturers for goods purchasedwas correctly entered in the Purchases journal as R7 500 buterroneously posted to their account as
R9 120 in the Creditors ledger.
4.
An electronic funds transfer to Voltex Suppliers in part settlementof account was not recorded in the Cash Payments Journal, R6300.
5.
A cheque to Southgate Enterprises for R9 000 was correctly recordedin the Cash Payments Journal but treated as a purchase in thesupplier’s account in the Creditors ledger.