Wrigley Ltd uses subsidiary ledgers for debtors and creditors. At 1 July 2011 debtors owed $7000 and creditors were owed $4000. Transactions for year ended 30 June 2012 were as follows:
$$\begin{array} { l r }
& \$ \
\text { Cash purchases } & 6000 \
\text { Credit purchases } & 11000 \
\text { Cash sales } & 15000 \
\text { Credit sales } & 20000 \
\text { Cash paid to creditors } & 9000 \
\text { Cash received from debtors } & 18000 \
\text { Discount received from creditors } & 500 \
\text { Discount allowed to debtors } & 700
\end{array}$$
-What was the balance of the debtors control account at 30 June 2012?
A) $8300
B) $9700
C) $21 300
D) $9000

Question

Wrigley Ltd uses subsidiary ledgers for debtors and creditors. At 1 July 2011 debtors owed $7000 and creditors were owed $4000. Transactions for year ended 30 June 2012 were as follows:
$$\begin{array} { l r } 
& \$ \
\text { Cash purchases } & 6000 \
\text { Credit purchases } & 11000 \
\text { Cash sales } & 15000 \
\text { Credit sales } & 20000 \
\text { Cash paid to creditors } & 9000 \
\text { Cash received from debtors } & 18000 \
\text { Discount received from creditors } & 500 \
\text { Discount allowed to debtors } & 700
\end{array}$$ 
-What was the balance of the debtors control account at 30 June 2012?
A) $8300
B) $9700
C) $21 300
D) $9000

Quizplus · Accepted Answer

The opening balance of debtors was $7000. Adding credit sales of $20000 gives $27000. Subtracting cash received from debtors ($18000) and discount allowed ($700) results in a closing balance of $8300.

Wrigley Ltd Uses Subsidiary Ledgers for Debtors and Creditors -What Was the Balance of the Debtors Control Account at 1