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Otter, a limited liability company, operates a computerised accounting system for its accounts receivable and accounts payable ledgers. The control accounts for the month of September...

      

Otter, a limited liability company, operates a computerised accounting system for its accounts
receivable and accounts payable ledgers. The control accounts for the month of September 1999
are in balance and incorporate the following totals:
otter11959.png
Although the control accounts agree with the underlying ledgers, a number of errors have been
found, and there are also several adjustments to be made. These errors and adjustments are
detailed below:
(1) Four sales invoices totalling Shs 1,386 have been omitted from the records;
(2) A cash refund of Shs 350 paid to a customer, A Smith, was mistakenly treated as a
payment to a supplier with the same name;
(3) A contra settlement offsetting a balance of Shs 870 due to a supplier against the
accounts receivable ledger account for the same company is to be made;
(4) Bad debts totalling Shs1,360 are to be written off;
(5) During the month, settlement was reached with a supplier over a disputed account. As a
result, the supplier issued a credit note for Shs 2,000 on September 26. No entry has yet
been made for this;
(6) A purchases invoice for Shs 1,395 was keyed in as Shs 1,359;
(7) A payment of Shs 2,130 to a supplier, B Jones, was mistakenly entered to the account
of R Jones;
(8) A debit balance of Shs 420 existed in the accounts payable ledger at the end of August
1999. The supplier concerned cannot now be traced and it has been decided to write off
this balance.
Required:
Prepare the accounts receivable and accounts payable ledger control accounts as they should
appear after allowing, where necessary, for the errors and adjustments listed.

  

Answers


Mutiso
otter11959i.png
Mutiso answered the question on November 20, 2018 at 19:02


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    autotransmitters11921b.png
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    umojawomens111004.png
    umojawomens111004b.png
    umojawomens111004c.png
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    While research and development costs of a project may meet the definition of an asset, the cost may not meet the criteria used in recognizing an asset.
    Define the term “asset” and explain the criteria used in recognizing an asset.

    Date posted: November 19, 2018.  Answers (1)