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Question 9.2 9.3

The document outlines tasks for reconciling creditor accounts for Natal Traders and Omar Ltd. It details specific discrepancies and transactions that need to be addressed for Gauteng Suppliers and Zecha Ltd, including invoices, payments, and errors in recording. The document also requests the preparation of remittance advice and ledger accounts based on the reconciled information.

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5 views

Question 9.2 9.3

The document outlines tasks for reconciling creditor accounts for Natal Traders and Omar Ltd. It details specific discrepancies and transactions that need to be addressed for Gauteng Suppliers and Zecha Ltd, including invoices, payments, and errors in recording. The document also requests the preparation of remittance advice and ledger accounts based on the reconciled information.

Uploaded by

siphokuhleaphelele452
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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QUESTION 9.

2 (A)
The accountant at Natal Traders is training a recently employed creditors clerk. The first task given to the
clerk was to reconcile the balance of Gauteng Suppliers in the creditors ledger at 31 May X1 with the balance
per their statement dated 31 May X1. The balance per statement at 31 May X1 amounts to R12 122.65. The
following items need to be taken into consideration:
a) Goods sent by Gauteng Suppliers on 20 May X1 had not arrived at Natal Traders by 31 May X1. Invoice
443 amounting to R670.35 appeared on the statement for these goods.
b) The balance per Gauteng Suppliers account in the creditors ledger on 30 April X1 amounted to R6 110.80
This was paid on 20 May X1 but did not appear on the statement.
c) Debit note D4 sent by Natal Traders on 20 May X1 amounting to R90.75 was recorded in the creditors
ledger but does not appear on the statement.
d) Following a phone call to Gauteng Suppliers it was discovered that invoice 122GH amounting to R1
255.60 per the statement should have been entered on Kwazulu Traders statement.
e) Credit note 333 amounting to R102.40 and invoice 475 amounting to R456.80 both appear on the incorrec
sides of the statement.
f) The credit column in Gauteng Suppliers account in the creditors ledger for May X1 has been overcast by
R1 000.

Prepare a remittance advice to accompany the payment to clear the balance in the account of Gauteng Suppliers
at 31 May X1. The cheque will be posted on 20 June X1.

QUESTION 9.3 (B)


Omar Ltd imports promotional items, such as caps, cushions, and scarves, from Zecha Ltd, which is Omar
Ltd’s only supplier. Zecha Ltd’s account is kept in the general ledger of Omar Ltd because it is the only creditor.
Omar Ltd uses the periodic method of recording inventory.

Payments made to Zecha Ltd are transferred directly from Omar Ltd’s bank to Zecha Ltd’s bank. These
payments are made on the last day of each month and equal the balance at the end of the previous month on
Zecha Ltd’s account in the general ledger. Zecha Ltd prepares its statements up to the 25th of each month.

1
The following additional information has been drawn to your attention:
a) Balance per Zecha Ltd’s statement at 25 September X1 is R86 445.
b) Balance per Zecha Ltd’s account in the general ledger of Omar Ltd at 31 August X1 is R108 000.
c) Included on the wrong side of the September statement is invoice A10 dated 28 August X1 amounting to
R12 600. This was the only invoice for the period 25 August to 31 August and was correctly recorded in
Omar Ltd’s books on 30 August.
d) A credit note for R18 910 appears on the September statement as R18 190. This credit note has been
correctly recorded by Omar Ltd in September. This is the only entry in the purchases returns journal for
September.
e) An invoice on the September statement amounting R13 400 is for Ouma Ltd, not Omar Ltd.
f) The bookkeeper incorrectly posted the total column in the purchases journal for September amounting to
R110 610 as R101 610.
g) Invoice S21 on the September statement dated 12 September X1 reflected 850 items at R60, whereas the
delivery made in respect of this invoice contained 580 items. Omar Ltd recorded the invoice amount in
the purchases journal on 16 September X1.
h) Invoice S24 on the September statement totalling R900 in respect of goods sent by Zecha Ltd (FOB
shipping point) on 24 September has not been recorded in Omar Ltd’s books.

1. Prepare a remittance advice at 30 September X1 to reflect the amount to be paid to Zecha Ltd on 31
October X1
2. Prepare the ledger account of Zecha Ltd in the books of Omar Ltd for the month of September X1.

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