Control Accounts (Y7C12)

1	You are given the following information:
	Receivables at 1 January 20x3 Receivables at 31 December 20x3 Total receipts during 20x3 (including cash sales of $5,000)											$10,000 $9,000 $85,000
	What is the figure for sales on credit during 20X3?
	A	$81,000
	B	$86,000
	C	$79,000
	D	$84,000
2	A supplier sends you a statement showing a balance outstanding of $14,350. Your own records show a balance outstanding of $14,500. Which one of the following could be the reason for this difference?
	A	The supplier sent an invoice for $150 which you have not yet received.
	B	The supplier has allowed you $150 cash discount which you had omitted to enter in your ledgers.
	C	You have paid the supplier $150 which he has not yet accounted for.
	D	You have returned goods worth $150 which the supplier has not yet accounted for.
3	Your payables control account has a balance at 1 October 20X8 of $34,500 credit. During October, credit purchases were $78,400, cash purchases were $2,400 and payments made to suppliers, excluding cash purchases, and after deducting settlement discounts of $1,200, were $68,900. Purchase returns were $4,700. What was the closing balance?
	A	$38,100
	B	$40,500
	C	$47,500
	D	$49,900
4	A receivables ledger control account had a closing balance of $8,500. It contained a contra to the payables ledger of $400, but this had been entered on the wrong side of the control account. What should be the correct balance on the control account?
	A	$7,700 debit
	B	$8,100 debit
	C	$8,400 debit
	D	$8,900 debit
5	Which of the following items could appear on the credit side of a receivables ledger control account?
	1	Cash received from customers
	2	Irrecoverable debts written off
	3	Increase in allowance for receivables
	4	Discounts allowed
	5	Sales
	6	Credits for goods returned by customers
	7	Cash refunds to customers
	A	1, 2, 4 and 6
	B	1, 2, 4 and 7
	C	3, 4, 5 and 6
	D	5 and 7
6	An inexperienced bookkeeper has drawn up the following receivables ledger control account:
	RECEIVABLES LEDGER CCONTROL ACCOUNT
						$									$
	Opening balance Cash from credit customers Sales returns Cash refunds to credit customers Discount allowed					180,000 228,000 8,000 3,300 4,200			Credit sales Irrecoverable debts w/f Contras against payables Closing balance (balancing figure)						190,000 1,500 2,400 229,600
						423,500									423,500
	What should the closing balance be after correcting the errors made in preparing the account?
	A	$130,600
	B	$129,200
	C	$142,400
	D	$214,600
7	The payables ledger control account below contains a number of errors:
	PAYABLES LEDGER CONTROL ACCOUNT
						$									$
	Opening balance (amounts owed) Cash paid to suppliers Purchases returns Refunds received from suppliers					318,600 1,364,300 41,200 2,700				Purchases Contras Discounts received Closing balance					1,268,600 48,000 8,200 402,000
						1,726,800									1,726,800
	All items relate to credit purchases. What should the closing balance be when all the errors are corrected?
	A	$128,200
	B	$509,000
	C	$224,200
	D	$144,600
8	The following control account has been prepared by a trainee accountant:
	RECEIVABLES LEDGER CCONTROL ACCOUNT
							$								$
	Opening balance Credit sales Cash sales Contras						308,600 154,200 88,100 4,600				Cash received Discount allowed Interest charged on overdue Irrecoverable debts Allowance for receivables Closing balance				147,200 1,400 2,400 4,900 2,800 396,800
							555,500								555,500
	What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?
	A	$395,200
	B	$304,300
	C	$307,100
	D	$309,500
9	The following receivables ledger control account prepared by a trainee accountant contains a number of errors:
	RECEIVABLES LEDGER CCONTROL ACCOUNT
					$									$
	Opening Balance Cash from credit customers Contras				614,000 311,000 8,650				Credit Sales Discount allowed Irrecoverable debts Interest charged on overdue Closing balance					301,000 3,400 32,000 1,600 595,650
					933,650									933,650
	What should the closing balance on the control account be after the errors in it have been corrected?
	A	$561,550
	B	$578,850
	C	$581,550
	D	$568,350
10	Your organisation sold goods to PQ Co for $800 less trade discount of 20% and cash discount of 5% for payment within 14 days. The invoice was settled by cheque five days later. Which one of the following gives the entries required to record BOTH of these transactions?
			Debit $			Credit $
	A	PQ Co Sales Bank Discount allowed PQ Co	640 608 32			640 640
	B	PQ Co Sales Bank Discount allowed PQ Co	640 600 40			640 640
	C	PQ Co Sales Bank Discount received PQ Co	640 608 32			640 640
	D	PQ Co Sales Bank Discount allowed PQ Co	800 608 182			800 800
11	Which one of the following is not a purpose of a receivables ledger control account?
	A	A receivables ledger control account provides a check on the overall accuracy of the personal ledger accounts.
	B	A receivables ledger control account ensures the trial balance balances.
	C	A receivables ledger control account aims to ensure there are no errors in the personal ledger.
	D	Control accounts help deter fraud.
12	Which of the following lists is composed only of items which would appear on the credit side of the receivables control account?
	A	Cash received from customers, sales returns, irrecoverable debts written off, contras against amounts due to suppliers in the accounts payable ledger
	B	Sales, cash refunds to customers, irrecoverable debts written off, discounts allowed
	C	Cash received from customers, discounts allowed, interest charged on overdue accounts, irrecoverable debts written off
	D	Sales, cash refunds to customers, interest charged on overdue accounts, contras against amounts due to suppliers in the accounts payable ledger
13	The following receivables ledger control account has been prepared by a trainee accountant:
	RECEIVABLES LEDGER CCONTROL ACCOUNT
				$												$
	Opening Balance Credit sales Cash sales Discount allowed			318,650 161,770 84,260 1,240				Cash from credit customers Interest charged Irrecoverable debts Sales returns Closing balance								181,140 280 1,390 3,990 379,120
				565,920												565,920
	What should the closing balance at 31 January 20X5 be after correcting the errors in the account?
	A	$292,380
	B	$295,420
	C	$292,940
	D	$377,200
14	At 1 April 20X9, the payables ledger control account showed a balance of $142,320. At the end of April the following totals are extracted from the subsidiary books for April:
	Purchases day book Return outwards day book Return inwards day book Payments to payables, after deducting $1,430 cash discount												$ 183,800 27,490 13,240 196,360
	It is also discovered that:
	(a)	The purchase day book figure is net of sales tax at 17.5%; the other figures all include sales tax.
	(b)	A customer's balance of $2,420 has been offset against his balance of $3,650 in the payables ledger.
	(c)	A supplier's account in the payables ledger, with a debit balance of $800, has been included on the list of payables as a credit balance.
	What is the corrected balance on the payables ledger control account?
	A	$130,585
	B	$144,835
	C	$98,429
	D	$128,985
	The following scenario relates to questions 15 to 17.
	P & Co maintain a receivables ledger control account within the nominal ledger. At 30 November 20X0, the total of the list of individual balances extracted from the receivables ledger was $15,800, which did not agree with the balance on the receivables ledger control account. An examination of the books revealed the following information, which can be used to reconcile the receivables ledger and the receivables ledger control account.
	1	The credit balance of $420 in Ahmed's payables ledger account had been set off against his account in the receivables ledger, but no entries had been made in the receivables and payables ledger control accounts.
	2	The personal account of Mahmood was undercast by $90.
	3	Yasmin's balance of (debit) $780 had been omitted from the list of balances.
	4	Thomas' personal account balance of $240 had been removed from the receivables ledger as a bad debt, but no entry had been made in the receivables ledger control account.
	5	The January total of $8,900 in the sales daybook had been posted as $9,800.
	6	A credit note to Charles for $1,000, plus sales tax of $300, had been posted to the receivables ledger control account as $1,300 and to Charles' personal account as $1,000.
	7	The total on the credit side of Edward's personal account had been overcast by $125.
15	Which of these items need to be corrected by journal entries in the nominal ledger?
	A	1, 3, 4 and 5 only
	B	1, 4 and 5 only
	C	1, 2, 5 and 6 only
	D	2, 3, 6 and 7 only
16	What is the revised total of the balances in the receivables ledger after the errors have been corrected?
	A	$15,105
	B	$16,195
	C	$16,495
	D	$16,915
17	Assuming that the closing balance on the receivables ledger control account should be $16,000, what is the opening balance on the receivables ledger control account before the errors were corrected?
	A	$14,440
	B	$15,760
	C	$17,560
	D	$17,860
18	The balance on Jude Co’s payables ledger control account is $31,554. The accountant at Jude Co has discovered that she has not recorded: A settlement discount of $53 received from a supplier; and A supplier’s invoice for $622. What amount should be reported for payables on Jude Co’s statement of financial position?
	A	$30,879
	B	$30,985
	C	$32,123
	D	$32,229
19	The accountant at Borris Co has prepared the following reconciliation between the balance on the trade payables ledger control account in the general ledger and the list of balances from the suppliers ledger:
	Balance on general ledger control account Credit balance omitted from list of balances from payables ledger														$ 68,566 (127)
	Undercasting of purchases day book														68,439 99
	Total of list of balances														68,538
	What balance should be reported on Borris Co’s statement of financial position for trade payables?
	A	$68,439
	B	$68,538
	C	$68,566
	D	$68,665
20	How should the balance on the payables ledger control account be reported in the final financial statements?
	A	As an expense account
	B	As a non-current liability
	C	As a current asset
	D	As a current liability