Incomplete records help

nodgers1

Hello

hope someone can help me. am working through some practice questions in my work book and am stuck on 2 questions

1) I need to calculate the purchase control ledger figure for the Trial Balance

i have been given these figures

Purchases Day Book 70,500
Payment to trade creditors (Bank) 70,000
Trade Creditor Balances as at 31/3/05 5,800
Trade Creditor Balance as at 31/3/06 6300

i have tried working out the prurchase control ledger account, but i seem to get the same figure on both sides even without putting in a missing figure (hope that makes sense?)

2) is to work out the rent account for year ending march 2006

these are the figures i have been given

Prepayment for rent 1000
Bank 7000 (this includes 200 for quarter ending May 2006

any help would be appreciated or if someone can put me on the right track,

thanks

sharonj

Hi

For the plca I have the details below


dr 70000 Bank cr Opening balance 5800
cr purchases day book 70500
dr 6300 Balance cd

dr 76300 cr 76300
cr balance b/d 6300

The pcla figure I am asuming is the balance of the creditors as at the end of March 2006 which would be your balance b/d 6300.

The rent account needs to have an opening debit balance of 1000 for the prepayment. A further debit would be allowed for payments that have gone through the bank. You would need to allow for the rent for the quarter ending May 2006. You only need to include 2/3 of the amount for prepayment for the next year as 1/3 needs to be included for the year ending march 2006.

Think these answers are right but feel free to correct me if I'm wrong as I'm sure it can be explained in a more detailed way.

sammyd22

Is this not the figure you are looking for? From the data i can see above this is what i have assumed to be the answer for question 1.

Dr Purchases - 70500
Cr Purchase Ledger Control A/c - 70500

Dr Purchase Ledger Control A/c - 70000
Cr Bank - 70000
________________________________________________

Purchase Ledger Control A/C
Bf 5800 Cr
Pdb 70500 Cr
Bank 70000 Dr
(Bf + Pdb - Bank 6300 C/f Credit balance

(B/f 5800 + PDB 70500 - Bank 70000 = 6300 C/f)

Your Trial Balance will now include:

Dr - Purchases 70500
Cr - Creditor C/A 6300
Cr - Bank 70000 (Do not use this as your TB figure! Take the bank balance you already have and Cr 70000 to arrive at your new bank figure)


As for question 2, is the Prepayments B/f? or does the Prepayment relate to the 2006/07 Financial year?

If you can let me know the question as it states in the book i will calculate an answer.

nodgers1

Hi sammy

i have managed to work out the answer and got it verified as correct by my tutor, but thanks anyway for yr help