Alpha Ltd. controls its Creditors’ Accounts by preparing monthly Creditors’ ledger Control Account in two parts, Northern and Southern Sectors. The following figures were available as at January 31st 2014 when there was a difference of Gh¢3,000 on the Trial Balance.
On 31st January, 2014 the officer in charge of Northern Sector Ledger declared GH¢89,600
while that of Southern Sector declared GH¢15,016.
You are required to:
i. Prepare Creditors Ledger Control Account for the Northern and Southern Sectors respectively. (12 marks)
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ii. Draw any conclusion you can from the two Control Accounts. (2 marks)
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The Control Accounts reveal that there is a difference of GH¢3,300.00 between the Control Account for the Southern sector (GH¢15,016-11,716) which is the total discovered by the officer in charge of the Southern Sector.
The Northern Sector ledger seems to be correct. The entries in the Southern Ledger should be checked again.