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How to find closing balance in Control T Account?
Dear Sir,
I do not know how to calculate closing balance when I prepare T account for the following question. Please help me. Thanks in advance.Q: Using the following information, prepare sales and purchases ledger control accounts for the year ended 31 December 20X3 and calculate the closing balances on each control accounts.
Balances at 1 January 20X3
Sales Ledger Control Account-Dr 37,170
Sales Ledger Control account-Cr 196
Purchases Ledger control Account-Dr 1,178
Purchases Ledger control Account-Cr 20,372Transactions for the year ended 31 December 20X3
Purchases 61,179
Sales 100,819
Returns outwards 1,723
Contra entries 364
Bad debts written off 1,002
Discounts allowed 597
Received payments from debtors 96,371
Discounts received 1,554
Paid to debtors 42
Paid to creditors 56,381The closing balance is simply the missing figure that makes the totals of the debit and credit sides add up.
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