Practice Activity 7.5 Receivables ledger control account

The following information pertains to Onyekachukwu Enterprises for November 2017

₦

November 1Receivables ledger 7,876,016 Debit

1 Receivables ledger 56,675 Credit

30 Transactions for the month:

Cash received from customers for unpaid balances 467,678

Cheques received from customers for unpaid balances 8,789,000

Credit sales 9,406,073

Bad debts 326,650

Discounts given to customers 299,786

Sales returns 664,855

Cash returned to a customer for paying more than his

account balance 68,867

The bank declined to pay the amount of cheques amounting to ₦39,758

received from customers for their unpaid balances.

The debt of ₦2,241,000 owed by Mr. Rapu is overdue for payment.

Onyekachukwu Enterprises charges 2.27 percent interest on overdue debt.

Receivables ledger 6,876,729 Debit

Receivables ledger 39,788 Credit

Required: Prepare the Receivables Ledger Control Account for November 2017.

See a suggested solution to practice activity 7.5 as follows.