Question

TRIAL BALANCE AS AT 30 JUNE 20.8

Trade receivables control............... ..............................................................................	R
35 476
Settlement discount granted………….. ........................................................................	450
Allowance for settlement discount granted...................................................................	945
Allowance for credit losses ..........................................................................................	1 950
Credit losses…………………………………………………………………………………	3 050
41 871

Additional information

(a)	M Mike, a debtor who owed Gift Dealers an amount of R3 256. was declared insolvent. The amount must be written off as irrecoverable.

(b)	Gift Dealers determined on 30 June 20.8, that the allowance for credit losses should amount to R2 510.

(c) Creditors with debit balances amounted to R1 200 and debtors with credit balances
amounted to R955. The debit balances in the trade payable control account needs to be
transferred to the trade receivables control account and the credit balance in the trade
receivables control account needs to be transferred to the trade payables control
account. No transfer regarding these debit and credit balances has been processed yet.
10. Which of the following amount will represent the correct balance for the trade receivable
control account as at 30 June 20.8 after taking the additional information into
consideration?
(1) R32 220
(2) R29 570
(3) R32 011
(4) R32 465
(5) R34 375

Answer 1