QUESTION 2 CREDITORS RECONCILIATION Sall…
QUESTION 2 CREDITORS RECONCILIATION Sally Fitzhenry runs a small bakery called Fitz Bakery in Edenvale, Johannesburg, which doubles up as a coffee shop. She provides baked goods to various school tuck shops in the area, which have entered into credit agreements with her. All her raw materials are purchased on credit from Micra Wholesalers, Pete’s Baking Supplies and The Plastic Warehouse. Sally banks with CBM Bank. The following information was taken from the financial records of Fitz Bakery as at 31 January 2021: 31 January 2021 CREDIT TERMS Debtors Control 86 521 30 days, less 5% discount Creditors Control 178 624 60 days, less 3% discount DEBTORS AGE ANALYSIS (31 Jan) Creditors List: Current R11 648 Micra Wholesalers 31 895 30 days R26 452 Pete’s Baking Supplies 33 150 60 days R31 430 The Plastic Warehouse 74 481 90+ days R16 991 Sally’s bookkeeper had resigned and worked her notice period in December. Sally therefore took it upon herself to manage the recording and reporting of the financial information for January 2021, despite her limited knowledge of Accounting. As a result, Sally misplaced and lost some source documents, other entries were omitted or entered incorrectly in her journals and ledgers, which have caused the Creditors Control account and Creditors List to not balance. The following totals were taken from the journals on 31 January 20: Total of the Creditors Control column in the CJ R 42 360 Total of the Creditors Control column in the CAJ R 8 110 Total of the creditors Control column in the CPJ R 18 762 Total of the Debtors Control column in the DJ R 21 640
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