Wakanda is an African-focused company in the sales of super-tech wrist watches with corporate logos. The wrist watches are purchased and sold in bulk on credit. The accountant is currently carrying out a reconciliation of the payables and receivables ledger control account balances, which are ₦218,320,000 and ₦172,120,000, respectively, to the total of the balances on the individual accounts in the payables and receivables ledgers, which are ₦197,660,000 and ₦156,134,000 respectively for the month of March 2019.

The following has been detected:

(i) Cash received of ₦1,070,000 has been debited to the individual customer’s account in the accounts receivable ledger.

(ii) The total of discount received for the month, amounting to ₦17,150,000, has not been entered in the control account but has been entered in the individual ledger accounts.

(iii) A supplier credit balance of ₦2,050,000 has been incorrectly treated as a debit.

(iv) A cheque for ₦2,555,000 from a customer has been dishonoured. The correct double entry has been posted, but the individual accounts have not been updated.

(v) A petty cash payment to a supplier amounting to ₦630,000 has been correctly treated in the control account, but no entry has been made in the supplier’s individual ledger account.

(vi) A payment of ₦322,000 from a customer has been incorrectly entered in the accounts receivable ledger as ₦233,000.

(vii) The purchases daybook total for March has been undercast (understated) by ₦20,000,000.

(viii) Total credit sales of ₦4,500,000 to an accountancy firm, TQ and Associates, have been posted correctly to the ledger account but not recorded in the control account.

(ix) Contras (set-offs) with the receivables ledger, amounting in total to ₦20,040,000, have been correctly treated in the individual ledger accounts but no entry has been made in the control account.

(x) Discounts allowed totalling ₦120,000 have not been entered in the control account.

Required:

a) Prepare the Trade Payable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Payable Ledger. (10 Marks)

b) Prepare the Trade Receivable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Receivable Ledger. (10 Marks)