1
The financial year of The Better Trading Company ended on 30 November 2007. You have
been asked to prepare a total debtors account and a total creditors account in order to produce
end-of-year figures for debtors and creditors for the draft final accounts.
You are able to obtain the following information for the financial year from the books of
original entry:
£
Sales – cash 344,890
– credit 268,187
Purchases – cash 14,440
– credit 496,600
Total receipts from customers 600,570
Total payments to suppliers 503,970
Discounts allowed (all to credit customers) 5,520
Discounts received (all from credit suppliers) 3,510
Refunds given to cash customers 5,070
Balance in the sales ledger set off against balance in the purchases ledger 70
Bad debts written-off 780
Increase in the provision for bad debts 90
Credit notes issued to credit customers 4,140
Credit notes received from credit suppliers 1,480
According to the audited financial statements for the previous year debtors and creditors as at
1 December 2006 were £26,555 and £43,450 respectively.
Required:
Draw up the relevant Total Accounts entering end-of-year totals for debtors and creditors.
(Association of Accounting Technicians)