edcc56beb2feb65331b1ab96e285336e

INDIVIDUAL ASSIGNMENT (10%)
DGN 1306 ACCOUNTING
MAY 2015 INTAKE

Due Date: 30 JULY 2015

Senior Lecturer/Head of Discipline – Accounting

JAMES LIOW

Email: [e-mail]
Tel: [phone]

Page 1 of 4

ASSIGNMENT 2
QUESTION 1
At 1 March 2013 Jaya Ltd had a debit balance of $23,450 on its Debtors Ledger Control
Account and a credit balance of $17,450 on its Creditors Ledger Control Account. Both balances had been reconciled with the individual accounts. During March 2013 the following transactions took place:$
Credit sales
19,670
Credit purchases
17,320
Bad debt written off
450
Increase in bad debt provision
2,000
Sales returns
523
Purchase returns
187
Cash received from credit customers
18,478
Cash sales
1,450
Cash paid to credit suppliers
16,425
Cash purchases
850
Debit balance in the Sales Ledger set off against credit balance in the Purchase 650
Ledger
Discounts allowed
620
Discounts received
385
Required
a) Prepare the Debtors Ledger Control Account and the Creditors Ledger Control Account of Jaya Ltd for March 2013.
(10 marks)
b) At 31 March 2013 the individual suppliers’ accounts had a net total balance of $17,773 and the individual customers’ accounts had a net total balance of $23,499. Suggest the most likely reasons for these totals differing from those calculated in (a) above.
(4 marks)
c) Give 2 important reasons for having a Debtors Ledger Control Account and a Creditors
Ledger Control Account.
(6 marks)
d) Name 2 categories of accounting errors that do not cause trial balance totals to disagree.
(5 marks)
[Total 25 marks]

Page 2 of 4

QUESTION 2
The following Trial Balance was extracted from the books of sole trader, Mr Oliver whose income derived from catering service and golf membership subscription on 31 July 2019:
Dr
Cr
$
$
Subscriptions fee
Catering stock at 1 August 2018
Catering staff wages
Catering purchases
Catering sales
Rent and rates
Golf club secretary’s salary
Lighting and heating
Insurance
General expenses
Drawings
Cash