Fram A 2020 – Assignment 4 Receivables & Payables Question (46 MARKS) Sunjang Equipment is a professional bicycle store. The following information was obtained from their records: Balances on 1 Ap

Fram A 2020 – Assignment 4

Receivables & Payables Question (46 MARKS)

Sunjang Equipment is a professional bicycle store. The following information was obtained from

their records:

Balances on 1 April 2020:

R

Debits: Receivables ledger 60 000

Payables ledger 3 000

Credits: Receivables ledger 3 750

Payables ledger 22 500

Allowance for credit losses 6 000

Balances on 30 April 2020:

R

Debits: Receivables ledger 94 950

Payables ledger 5 250

Credits: Receivables ledger 4 500

Payables ledger 27 300

Allowance for credit losses 9 495

Transactions for the month ended 30 April 2020:

R

Credit sales 258 000

Payment received from receivables 167 700

Bad debts written off 15 750

Credit purchases 133 500

Cash purchases 82 500

Cash sales 51 000

Returns (in) 64 500

Returns (out) 16 500

Payment made to payables 114 450

Deposit made received from receivables returned by bank 13 500

Interest charged to receivables 10 650

REQUIRED:

a) Prepare the following ledger accounts:

• Receivables control (18)

• Payables control (15)

b) Present Receivables and Payables on the statement of financial position of on

30 April 2020. (13)

Please note: Sunjang Equipment is NOT registered for VAT purposes