[Deeeandra]

Help with creditors reconciliation statement and creditors ledger. On 30 October 2013 the creditors ledger account of Verena Wholesalers in the books of Angels Stores showed a credit balance of R8 200. The statement received from Verena Wholesales showed a debit balance of R19 720.

1. Angels Stores had sent a cheque for R4 940 (less the 5% discount) on 2 October in settlement of stock bought on 4 August. As the cheque only reached Verena Wholesalers on 6 October they did not allow the discount.

2. The statement of Verena Wholesalers showed an invoice for R6 000 on 8 October. Angels Stores, however, showed the invoice for 35 940 as they had deducted their normal trade discount. Verena Wholesalers admitted their error and have promised to rectify the situation.

3. Angels Stored returned goods per debit note on 15 October for R1 350. Verena Wholesalers had made the entry for the credit note but had put the entry on the wrong side of the account.

4. Angels Stores showed a debit note for R2 900 but the goods were actually returned to another suppier.

5. Angels Stores showed the following correct entries but they did not appear on the statement:
- A cheque for R3 820 on 29 October.
- A debit note for R560 on 30 October.

[paraclete]

You have not said what aspect of a reconciliation you don't understand.

A reconciliation between two balances starts with one balance and lists all the differences but I don't see a list of differences here organised in manner where you can establish whether you have identified all the differences. We do not provide model answers..

I suggest you construct a ledger account for each and then prepare your reconciliation. There are assumptions that need to be made here regarding the balance at September; from the data provided we are to assume it is 4,940 and that there were no other outstanding items. I think that assumption falacious

What does the amount 35940 mean?