This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 1: Prepare the Corrected Debtors Control Account. We start with the given incorrect Debtors Control Account and apply the necessary corrections from the additional information. Initial Balances: Balance b/d (DR): R16 088 Sales (DJ) (DR): R8 888 Bank (CPJ) (DR): R600 (This is assumed to be a valid debit entry, e.g., a refund to a debtor, originating from the Cash Payments Journal). Bank and discount allowed (CRJ) (CR): R7 880 Corrections affecting the Debtors Control Account: The sales column in the Debtors Journal was undercast by R500. This means the total sales posted to the Debtors Control Account was R500 too low. Add R500 to the DR side (Sales). An invoice sent to C. Mbotho, R400, was not entered in any journal. This is an unrecorded credit sale. Add R400 to the DR side (Sales). The bookkeeper did not post the debtors allowances total of R760 in the DAJ to the general ledger. This means the Debtors Control Account was not credited with R760 for sales returns. Add R760 to the CR side (Debtors Allowances). Now, we calculate the corrected totals and the closing balance. Debtors Control Account |l|l|r|l|l|r| 2026 & Details & Amount (R) & 2026 & Details & Amount (R) \\ Aug 01 & Balance b/d & 16\,088 & Aug 31 & Bank and discount allowed (CRJ) & 7\,880 \\ Aug 31 & Bank (CPJ) & 600 & & Debtors Allowances (DAJ) & 760 \\ & Sales (DJ) & 8\,888 & & Balance c/d & 17\,836 \\ & Sales (DJ) - undercast & 500 & & & \\ & Sales (DJ) - unrecorded & 400 & & & \\ & Total & 26\,476 & & Total & 26\,476 \\ Sept 01 & Balance b/d & 17\,836 & & & \\ Step 2: Correct the information in the Debtors List and calculate the correct total. We start with the given incorrect Debtors List and apply the necessary corrections from the additional information to each individual debtor's balance. Initial Debtors List: G. Gabela: R4 146 A. Mtshali: R3 065 C. Mbotho: R4 380 L. Cebisa: R4 145 Total: R15 736 Corrections affecting individual debtor balances: G. Gabela's balance was undercast by R1 000. Add R1 000 to G. Gabela's balance. An invoice, R700, issued to A. Mtshali was entered in the Debtors Journal but not posted to A. Mtshali's account. Add R700 to A. Mtshali's balance. An invoice sent to C. Mbotho, R400, was not entered in any journal, nor posted to a ledger account. Add R400 to C. Mbotho's balance. No corrections are mentioned for L. Cebisa. Now, we calculate the corrected balance for each debtor and the new total. Corrected Debtors List on 31 August 2026 |l|r|l|r| Debtor & Original Balance (R) & Correction & Corrected Balance (R) \\ G. Gabela & 4\,146 & + R1 000 (undercast) & 5\,146 \\ A. Mtshali & 3\,065 & + R700 (invoice not posted) & 3\,765 \\ C. Mbotho & 4\,380 & + R400 (unrecorded invoice) & 4\,780 \\ L. Cebisa & 4\,145 & No correction & 4\,145 \\ Total & 15\,736 & & 17\,836 \\ The corrected total of the Debtors List is R17 836. This matches the corrected balance of the Debtors Control Account, R17 836. Send me the next one 📸