DEBTORS RECONCILIATION

Basic Debtor | debtors control account | debtors list | creditor | creditors control account | creditors list
concepts internal control | credit sales | debtors allowances | discount allowed | dishonoured cheque | R/D
debtors reconciliation bad debts | discount received | discount cancelled on dishonoured cheques
interest on overdue accounts

ACTIVITY 1 (Debtors reconciliation) (25 marks; 20 minutes)

The information relates to Baron Traders. They allow debtors 30 days credit. Some errors and
omissions were not recorded in the Debtors control account and Debtors List below during August
2019.
REQUIRED
1.1 Prepare the CORRECTED Debtors control account in the Workbook. (16)
1.2 Correct the information in the Debtors List and calculate the correct total. (9) NOTE: The balance
on 31 August on the corrected Debtors control a/c must be the same as the correct total of Debtors List on 31
August 2019 .

INFORMATION A
INCORRECT DEBTORS CONTROL ACCOUNT FOR AUGUST 2019

DEBTORS CONTROL ACCOUNT

2019 2019 Bank and
Aug 1 Balance b/d 15 368 Aug 31 Discount Allowed CRJ 7 880
31 Bank (R/D) CPJ 600 Balance c/d 16 968
Sales DJ 8 888
24 848 24 848
2019
Sep 1 Balance b/d 16 968

B INCORRECT DEBTORS LIST ON 31 AUGUST 2019

G. Smith 4 146
A. Brown 3 065
C. Black 4 380
L. White 4 145 Undercast = total is smaller than what it should be
15 736 Overcast = total is more than what it should be

C Additional information
• G. Smith’s balance was undercast by R1 000
• An invoice sent to C. Black, R400 has not yet been entered in any journal, nor posted to a
ledger account
• The Sales column in the Debtors Journal was undercast by R500.
• An invoice, R700 issued to A. Brown for goods sold, was entered in the Debtors Journal, but
not posted to A. Brown’s account in the Debtors Ledger.
• The bookkeeper did not post the Debtors allowances total of R760 in the DAJ to the
general ledger.