Simply Traders have the telephone numbers of all their debtors - NSC Accounting - Question 2 - 2016 - Paper 1

To calculate the correct closing balance:

1. Start with the initial balance:

   • R179,500

2. Add the new invoice:

   • R2,500 (for W Smith)

3. Deduct the unrecorded amount:

   • R900 (outstanding invoice for W Smith)

Thus, the calculation will be:

$179,500 + 2,500 - 900 = 181,100$

The correct closing balance of the Debtors' Control Account is R181,100.

1. J Ramsay (D2):
   • Initial amount: R37,500
   • Adjustment: -R3,000
   • Balance: R34,500

So, the amount owing by J Ramsay is R34,500.

2. W Smith (D3):
   • Initial amount: R19,100
   • Adjustment: +R2,500 (new invoice)
   • Total: R21,600

Thus, the amount owing by W Smith is R21,600.

3. C Prince (D5):
   • Total amount owing: R18,300
   • No adjustments needed.

Therefore, the amount owing by C Prince is R18,300.

To find the percentage:

1. Total amount approved under credit terms:

   • R142,600

2. Total debtors:

   • R200,000

3. Calculate compliance:

ext{Compliance Percentage} = rac{142,600}{200,000} imes 100 = 71.3 ext{%}

The percentage of debtors complying with the credit terms is 71.3%.

1. Send Monthly Statements: Regular reminders can help keep payments on the debtor's radar, reducing the risk of late payments.

2. Employ Collection Agencies: Utilizing collection agencies can facilitate the efficient recovery of overdue debts, thus maintaining cash flow.