Acct1501 - Past paper question (1 Viewer)

[urahb]

hey guys can someone help me how to calculate this question please?

Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2005, debtors owed $4000 and $7200 was owing to creditors. Transactions for year ended 30 june were as follows:

$
Credit sales 14,000
Cash sales 3.000
Credit purchases 23,000
Cash purchases 1,500
Cash received from debtors 11,000
Cash paid to creditors 25,000
Discount received from creditors 700
Discount allowed to debtors 400

What was the balance of the debtors control account at 30 jun 2006?

Ans $ 7,000

What was the balance of the creditors control account at 30 june 2006?

Ans $ 5,200

 

[fozzster22]

where'd you get this past paper?

 

[runnable]

I got 6600 for balance of debtors control, considering the discount allowed.

4000 (o/b) + 14000 (credit sales) - 11000 (cash received) - 400 (discount allowed) = 6600?

Same story for creditors, I got 4500 balance.

 

[shinn]

I got 6600 for balance of debtors control, considering the discount allowed.

4000 (o/b) + 14000 (credit sales) - 11000 (cash received) - 400 (discount allowed) = 6600?

Same story for creditors, I got 4500 balance.

I think it would be correct if you disregard the discount allowed, $7000 for debtors.
Same applies for creditors

 

[runnable]

I think it would be correct if you disregard the discount allowed, $7000 for debtors.
Same applies for creditors

Why would you disregard discount allowed? Thats not what you're supposed to do. Look at pg 277.