Ayesha is a trader who maintains a full set of accounting records and prepares control accounts at the end of each month. She provided the following information for the month of August 2021. $ On 1 August Sales ledger control account debit balance 9800 Sales ledger control account credit balance 420 Purchases ledger control account credit balance 7700 Totals for the month Credit sales 88850 Credit purchases 55400 Cash purchases 1860 Receipts from customers 82 100 Payments to credit suppliers 50600 Discount received 600 Discount allowed 900 Irrecoverable debt written off 300 Provision for doubtful debts 450 Sales returns 2400 Interest charged to customer on overdue account 90 Contra between sales ledger and purchases ledger 2920 The sales ledger control account credit balance brought down on 1 September 2021 was $350.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

1. [1] Sales ledger control account: Debit balance b/d $9800
2. [1] Sales ledger control account: Credit balance b/d $420
3. [1] Sales ledger control account: Sales $88850
4. [1] Sales ledger control account: Interest $90
5. [1] Sales ledger control account: Bank $82100
6. [1] Sales ledger control account: Discount allowed $900
7. [1] Sales ledger control account: Irrecoverable debts $300
8. [1] Sales ledger control account: Sales returns $2400
9. [1] Sales ledger control account: Contra $2920
10. [1] Sales ledger control account: Balance c/d $10050 (debit side)
11. [1] Sales ledger control account: Balance c/d $350 (credit side)
12. [1] Sales ledger control account: Total $99090 (for both sides)
13. [1] Sales ledger control account: Balance b/d $10050 (debit side, OF)
14. [1] Purchases ledger control account: Credit balance b/d $7700
15. [1] Purchases ledger control account: Purchases $55400
16. [1] Purchases ledger control account: Bank $50600
17. [1] Purchases ledger control account: Discount received $600
18. [1] Purchases ledger control account: Contra $2920
19. [1] Purchases ledger control account: Balance c/d $8980
20. [1] Purchases ledger control account: Total $63100 (for both sides)
21. [1] Purchases ledger control account: Balance b/d $8980 (credit side, OF)
22. [1] Returns: Sales returns journal
23. [1] Discount allowed: Cash book
24. [1] Interest charged to customer on overdue account: General journal/Journal
25. [1] Contra entry: General journal/Journal
26. [1] Overpayment by credit customer
27. [1] Credit customer returned goods after settling the account
28. [1] Credit customer paid for goods in advance
29. [1] Payment by credit customer before cash discount was deducted