MCQ - Control Accounts

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Which item would be recorded as a credit entry in a purchases ledger control account?
*

1 point

amounts paid to credit suppliers

contra with the sales ledger control account

discount received from credit suppliers

interest charged on late payment

Raj is both a customer of and a supplier to Balbir. Raj’s account in Balbir’s sales ledger showed a debit balance of $300. There was a credit balance of $100 on Raj’s account in the purchases ledger. A contra entry between the two accounts was agreed.

Which entry would Balbir make in his purchases ledger control account?

1 point

credit $100

credit $200

debit $100

debit $200

Which statement about a purchases ledger control account is not correct? *

1 point

It acts as a check on the balance of the purchases account.

It includes transactions relating to all the credit suppliers.

It is prepared using information from the books of prime entry.

It provides proof of the arithmetical accuracy of the purchases ledger.

A sales ledger control account had a debit balance of $10 000. It was found that a $2000 contra entry to the purchases ledger control account had been entered on the wrong side of the sales ledger control account.

What was the correct debit balance on the sales ledger control account?

1 point

$6000

$8000

$12 000

$14 000

What is included in a purchases ledger control account? *

1 point

cash purchases

debts written off as irrecoverable

discount allowed

goods returned to credit suppliers

Thembi is preparing her sales ledger control account. She needs to know:

1) The total for goods which have been returned by credit customers.

2) The amount owed by credit customers which have been written off as irrecoverable.

Where can she obtain this information?

1 point

What would not be included in a sales ledger control account? *

1 point

cash sales recorded in the cash book

cheques received from credit customers recorded in the cash book

goods sold on credit recorded in the sales journa

irrecoverable debts written off recorded in the journal

George is preparing his purchases ledger control account.

Which information would he obtain from his general journal?

1 point

contra entries with the sales ledger

goods returned to credit suppliers

irrecoverable debts written off

refunds received from credit suppliers

Which items may appear on the debit side of a purchases ledger control account?

1) contra entry

2) discount received

3) interest on overdue account

4) purchases

1 point

1 and 2 only

1, 2 and 3

3 and 4

4 only

Athena is both a customer and a supplier of Heidi. Athena’s account in Heidi’s sales ledger showed a debit balance of $340 and her account in Heidi’s purchases ledger showed a credit balance of $260. A contra between the two accounts was agreed.

Which entry would Heidi make in her sales ledger control account?

1 point

credit $80

credit $260

debit $80

debit $260

What is a reason for preparing a sales ledger control account *

1 point

to calculate total sales revenue

to ensure trade receivables pay on time

to help prepare the income statement

to summarise the accounts of the trade receivables

Javid’s sales ledger control account had a debit balance of $12000. Interest on an overdue account, $40, and discount allowed, $150, had been omitted.

What was the correct balance on the sales ledger control account

1 point

$11 810

$11 890

$12 110

$12 190

What is a purpose of preparing a sales ledger control account *

1 point

to identify irrecoverable debts

to make fraud more difficult

to provide the total owed to trade payables

to show the total of cash and credit sales

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