Question

8(a) Ade, a trader, had the following balances in the creditor's ledger on October 31, 2020: Kristy GH¢4,200; Erica GH¢8,700. The following transactions took place in November 2020:
4 Goods bought from Kofi 17,400
4 Returned goods to Erica 1,500
10 Goods returned to Kofi 900
16 Goods bought from Mary 10,500
21 Goods bought from Kofi 14,100
24 Payment to Kristy after deducting discount of GH¢300 3,900
27 Payment to Erica after deducting discount of GH¢600 6,600

All purchases were on credit while all payments made through the bank.

You are required to prepare:
(a) The individual creditors account;
(b) The total creditors control account.

Accepted Answer

(a) INDIVIDUAL CREDITORS ACCOUNTS
KRISTY A/C: Dr: Cash/Bank 3,900, Bal c/d 300. Total 4,200. Cr: Bal b/d 4,200.
ERICA A/C: Dr: Returned goods 1,500, Cash/Bank 6,600, Bal c/d 600. Total 8,700. Cr: Bal b/d 8,700.

(b) TOTAL CREDITORS CONTROL ACCOUNT (GH¢)
Dr: Returned to Erica 1,500; Returned to Kofi 900; Payment: Kristy 3,900; Payment: Erica 6,600; Bal c/d: Kristy 300, Erica 600, Kofi 30,600, Mary 10,500. Total 54,900
Cr: Bal b/d: Kristy 4,200, Erica 8,700; Purchases (Kofi) 17,400; Purchases (Mary) 10,500; Purchases (Kofi) 14,100. Total 54,900

WAEC Accounting 2022 Theory — Question 16

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