Scribd
Upload
3 views

Control Accounts

The document contains revision questions and exercises related to control accounts in accounting, specifically focusing on sales and purchases ledgers. It includes detailed scenarios with financial data for individuals Simon Peter and Harvey Rabbit, requiring the preparation of control accounts and adjustments for errors. Additionally, it discusses the importance of control accounts and provides a practical exercise for preparing and amending these accounts.

Uploaded by

tmuyambo875
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3 views

Control Accounts

The document contains revision questions and exercises related to control accounts in accounting, specifically focusing on sales and purchases ledgers. It includes detailed scenarios with financial data for individuals Simon Peter and Harvey Rabbit, requiring the preparation of control accounts and adjustments for errors. Additionally, it discusses the importance of control accounts and provides a practical exercise for preparing and amending these accounts.

Uploaded by

tmuyambo875
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

“A” LEVEL ACCOUNTING

CONTROL ACCOUNTS

REVISION QUESTIONS

BOOKLET

Tinofamba nevanofamba

1|Page TINOFAMBA NEVANOFAMBA


QUESTION 1
The books of Simon Peter gave the following information for the month of 31 May 2015. All
sales and purchases were on credit.

Sales ledger balance at 1 May 2015 5 627


Purchases ledger balance at 1 May 2015 4 388
Sales for the year 100 384
Purchases for the year 64 987
Sales returns 1 997
Purchases returns 864
Payments received from debtors (all banked) 92 760
Payments made to creditors 63 520
Debtor’s dishonoured cheque 109
Discount allowed 4 082
Discount received 3 241
Bad debts written off 1 884
Debit balances transferred to purchases ledger control account 208

The total of Simon Peter’s sales ledger balances is $9 387, which differs from the closing
balance in the sales ledger control account.
Required
a) Extract the relevant information from the above and prepare the sales ledger control
account for the month ended 31 May 2015. [10]
The following errors have been discovered since the sales ledger control account was
prepared.
1. A sales invoice for $2 001 had been completely omitted from the books.
2. A page of the sales day book with entries totaling $7 820 had been omitted from the
total sales but the individual entries had been posted to the debtors account.
3. A debit balance of $4 020 had been omitted from the list of debtors.
4. A sales ledger account had been understated by $220
5. Discount allowed had been overstated by $620
6. An entry of $1 620 in the sales day book had been omitted from the debtors account.
7. A contra entry had been made in the purchases ledger for a debit balance of $1 412 in
the sales ledger, but no entry had been made in the control accounts.
8. A receipt of $1 210 was debited to bank but not posted to the debtors account.
9. A credit note for $720 sent to a debtor had been entered in the sales day book and
posted as a sale to both accounts.
10. A debtor owing $1 820 was declared bankrupty during May 2015. The debt was
written off in the control account but no entry have been made in the debtors account.

Required
b) Prepare an amended sales ledger control account, extracting relevant information
from the list of errors given above. [8]
c) Prepare a statement altering the total of the sales ledger balance to agree with the new
sales ledger control account balance. [7]

2|Page TINOFAMBA NEVANOFAMBA


QUESTON 2
The following information has been extracted from the accounts of Harvey Rabbit for the
year ended 31 March 2010.
$
Sales ledger balance at 1 April 2009 29 040
Credit sales 499 892
Cash sales 14 634
Credit sales returns 9 878
Receipts from debtors, banked 462 680
Discount allowed on credit sales 21 404
Bad debts written off 9 510
Debtors’ cheques dishonoured 662
Contra entries 1 153

REQUIRED
a. Prepare Harvey Rabbit’s sales ledger control account for the year ended 31 March
2010. [10]

The total of Harvey Rabbit’s sales ledger balances at 31 March 2010 was $26 845, which
did not agree with the closing balance of his sales ledger control account. On checking his
accounts he discovered the following errors.

1. A credit note for $420 which had been sent to a debtor had been entered in the sales
journal (day book) and posted as a sale to both accounts.
2. A debit entry in the sales ledger for $698 had been set off as a contra entry in the
purchases ledger, but no entry had been made in the control accounts.
3. The discount allowed account had been overstated by $310.
4. A sales invoice for $998 had been completely omitted from the accounts.
5. A debit balance of $2102 had been omitted from the list of debtors.
6. A debtor who owed $896 had been declared bankrupt during March 2010. The debt
had been written off in the control account, but no entry had been made in the
debtor’s account.
7. A receipt for $630 had been debited to the bank account but omitted from the
debtor’s account.
8. An entry for $816 in the sales journal (day book) had not been posted to the debtor’s
account.
9. A sales ledger account had been understated by $200.
10. A page of the sales journal (day book) with entries totalling $3856 had been omitted
from total sales. The amounts had, however, been posted to the debtors’ accounts.

REQUIRED
b. (i) Beginning with the closing balance which you have calculated in (a), prepare a
statement showing the amended balance on the control account. [6]

(ii) Beginning with Harvey Rabbit’s sales ledger balance of $26 845, prepare a
statement amending the total of the sales ledger balance to agree with the new
control account balance. [8]

c. State three advantages of keeping control accounts. [6]


[Total: 30]

3|Page TINOFAMBA NEVANOFAMBA


QUESTION 3

a) Outline three reasons of keeping control accounts. [6]


b) The following information was extracted from the books of William Noel for the year
ended 30 April 2001.
$
Purchases ledger balance at 1 May 2000 43 120
Credit purchases for the year 824 140
Credit purchases returns 12 400
Cheques paid to creditors 745 980
Cash purchases 8 940
Discount received on credit purchases 31 400
Credit balance transferred to sales ledger accounts 5 210

Draw up the Purchases Ledger Control Account for the year ended 30 April 2001.[6]

The total of the balances in Noel’s purchases ledger amounts to $67 660, which does
not agree with the closing balance in the Control account.

c) The following errors were then discovered.


1) Discount received had been overstated by $1 000.
2) A credit purchases invoice for $2 040 had been completely omitted from the
books.
3) A purchases ledger account had been under casted by $100.
4) A credit balance of $850 in the purchases ledger had been set off against a contra
entry in the sales ledger, but no entry had been made in either control account.
5) A payment of $1 450 had been debited to the creditor’s account but was omitted
from the bank account.
6) A credit balance of $3 210 had been omitted from the list of creditors.

i. Extract the necessary information from the above list and draw up an
amended purchases ledger control account for the year ended 30 April 2001.
[4]

ii. Beginning with the given total of $67 660, show the changes to be made in the
purchases ledger to reconcile it with the new control account balance.
Prepare it in narrative form. [4]

4|Page TINOFAMBA NEVANOFAMBA

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy