Kya is a wholesaler. She prepares control accounts at the end of each month. The following information relates to the month ended 30 April 2011. Sales ledger control account balance 1 April 2011 $ 64 350 Cheques received from debtors 136 800 Discount allowed 5 250 Bad debts written off 7 900 Cash sales 10 750 Credit sales 153 400 Returns inwards 8 100 REQUIRED (a) State two ways in which control accounts can be used by Kya in her business. 1 2 (b) Prepare the sales ledger control account for the month ended 30 April 2011. Balance the account and bring down the balance on 1 May 2011. Sales ledger control account Later when preparing the trial balance, Kya discovered the following errors: 1 A receipt of $485 from a debtor, D. Hulme, had been correctly entered in the cash book but had been credited to the account of D. Holm. 2 A purchase of office equipment, $550, had been correctly entered in the cash book, but had been entered in error into the purchases account.

1. (a)State two ways in which control accounts can be used by Kya in her business. 1 2[2]
2. (b)Prepare the sales ledger control account for the month ended 30 April 2011. Balance the account and bring down the balance on 1 May 2011. Sales ledger control account[8]
3. (c)(i)Prepare the journal entries to correct the errors in 1 and 2 above. Narratives are not required. Journal Dr $ Cr $[4]
4. (c)(ii)State the name of the accounting concepts (principles) which have not been followed in 1 and 2 above. 1 2[2]
5. (d)Kya employs Rose as a receptionist. Rose works 35 hours per week at $7 per hour and 10 hours per week at time and a half. In addition, Kya has to pay an employers' tax at the rate of 10% of Rose's gross pay. REQUIRED (d) Calculate the total cost to Kya of employing Rose for one week.[4]