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QUESTION TWO [15] Hybrid Solutions have many debtors and therefore keep records of transactions with individual debtors in a Debtors Subsidiary ledger (DL) while the general ledger houses the Debtors Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtors Control Account.

The following is the summarised list of debtors at 31 August 2021 before any adjustments were made for errors and omissions: Debtors list - Balances before corrections for errors and omissions

DLFolio BalanceAmount - R Andy DL1 15 070 Beauty DL2 19 240 Cindy DL 313 760 AN Other Debtors DL 4 to 79 94 880 Total of the list of debtors 142 950

All the totals from the subsidiary journals have been posted to the Debtors Control account and a debit balance of R141 500 at 31 August 2021as shown below.

Errors and omissions still to be taken into account for the reconciliation of the list of debtors and the DebtorsControl account at 31 August 2021: 1. Sales of R3 680 to Cindy were incorrectly recorded in the sales journal as a sale to Andy and posted as such. 2. A receipt of R5 000 from Beauty was incorrectly recorded as R4 000 in the cash receipts journal and posted to Beautys account. 3. Cindy was granted an allowance of R400 for goods sent to her that were slightly damaged. The allowance was incorrectly recorded in the Sales journal whereas it should have been recorded in the sales returns and allowances journal. 4. Interest of R250 must be charged to the overdue part of Andys account. The interest has already been recorded in the Debtors control account.

5. Debtor Brad Pots account of R1 700 is included with AN Other debtors R94 880. Attorneys have confirmed that Brad has been declared insolvent. The balance of his account of R1 700 must be written-off as irrecoverable. The credit loss has already been recorded in the Debtors control account.

Required : Take the errors and omissions into account and reconcile the list of debtors to the adjusted balance of the Debtors Control account for the period ended 31 August 2021. Present your solutions as follows:

Mode Delay 2.1 Debtors Control account: Dr Cr 2021 31.8 Debtors Control Account R 2021 141 500 31.8 R Balance bld 2.2 List of debtors: DL Adjusted Balance - R Folio Given Balance-R 15 070 Debtors list Andy Adjustments DL1 Beauty DL2 19 240 DL3 13 760 Cindy AN Other Debtors DL 4 to 79 94 880 Total of the list of debtors 142 950 Page 4 of 10 Mode Delay 2.1 Debtors Control account: Dr Cr 2021 31.8 Debtors Control Account R 2021 141 500 31.8 R Balance bld 2.2 List of debtors: DL Adjusted Balance - R Folio Given Balance-R 15 070 Debtors list Andy Adjustments DL1 Beauty DL2 19 240 DL3 13 760 Cindy AN Other Debtors DL 4 to 79 94 880 Total of the list of debtors 142 950 Page 4 of 10

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