State five items that cause a difference between the cash book balances and the bank statement balances.

Question

ScanSolve AI Tutor · Accepted Answer

a) Sales ledger control accounts balances The sales ledger control accounts extracted from the trial balance, with their balances, are: Sales Returns: 12,000 debit balance Discounts Allowed: 6,000 debit balance Debtors Control: 75,000 debit balance b) Purchase ledger control accounts balances The purchase ledger control accounts extracted from the trial balance, with their balances, are: Purchase Returns: 18,000 credit balance Discounts Received: 9,000 credit balance Creditors Control: 42,000 credit balance Step 1: Identify accounts relating to the sales ledger (debtors/customers side). These include contra entries affecting customer accounts: sales returns and discounts allowed (both debits), plus the control account itself (debtors control, debit). Step 2: Identify accounts relating to the purchase ledger (creditors/suppliers side). These include contra entries affecting supplier accounts: purchase returns and discounts received (both credits), plus the control account itself (creditors control, credit). Step 3: State balances directly from the trial balance table provided, retaining debit/credit nature and units in dollars. Sales ledger: Sales Returns 12,000 Dr, Discounts Allowed 6,000 Dr, Debtors Control 75,000 Dr Purchase ledger: Purchase Returns 18,000 Cr, Discounts Received 9,000 Cr, Creditors Control 42,000 Cr

State five items that cause a difference between the cash book balances and the bank statement balances.

Step-by-step solution

Part a

Part b· 3 steps

Identify accounts relating to the sales ledger (debtors/customers side).

Identify accounts relating to the purchase ledger (creditors/suppliers side).

State balances directly from the trial balance table provided, retaining debit/credit nature and units in dollars.

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