QUESTION 2 Fatima Textiles Nigeria Limited, a manufacturer of woven fabrics in Kano, uses a manual accounting system. The company's bookkeeper recently resigned and the Managing Director, Alhaji Musa Garba, has engaged you as a Chartered Accountant to reconstruct the accounting records for the month of March 2024. The following information is available: (i) Opening balances as at 1 March 2024: - Trade receivables control account: N1,840,000 (debit) - Trade payables control account: N960,000 (credit) - Cash at bank: N2,200,000 (debit) (ii) Transactions during March 2024: - Credit sales per sales day book: N3,750,000 - Credit purchases per purchases day book: N2,100,000 - Cash sales: N580,000 - Cash purchases: N210,000 - Receipts from credit customers: N3,200,000 - Payments to credit suppliers: N1,750,000 - Discount allowed to customers: N45,000 - Discount received from suppliers: N28,000 - Sales returns per returns inward day book: N120,000 - Purchases returns per returns outward day book: N85,000 - Bad debt written off: N35,000 - Contra entry (set-off between receivables and payables ledger): N18,000 - Bank charges: N12,000 - Salaries paid: N450,000 - Rent and rates paid: N180,000 Required: (a) Explain the purpose and importance of control accounts in the double entry system, highlighting how they serve as a check on the accuracy of the personal ledgers. (6 marks) (b) Prepare the Trade Receivables Control Account and the Trade Payables Control Account for March 2024, clearly showing the closing balances. (12 marks) (c) Identify and explain TWO differences between a control account and a subsidiary ledger. (4 marks) Total: 22 marks