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

Sales on credit during 20X3 amount to

A.
B.
C.
D.
2.

$81,000
$86,000
$79,000
$84,000

Your payables ledger 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 cash discounts of $1,200 were $68,900.
Purchases returns were $4,700.
The closing balance was:

A.
B.
C.
D.
3.

$38,100
$40,500
$47,500
$49,900

In the year to 31 December 20X0 this transaction occurred:

Discounts allowed
Discounts received
Cash paid to suppliers
Purchases from supplier
Contras with receivables ledger
Payables ledger control
Account balance at 1 January 20 x 0

$3,000
$1,500
$30,000
$40,000
$1,000
10,000

The balance on the payables ledger control account at 31 December is

A.
B.
C.
D.
4.

$16,000
$17,500
$18,500
$20,500

Which of the following items could appear on the credit side of a receivables ledger control
account?
(1)
Cash received from customers
(2)
Bad debs written off
(3)
Increase in allowance for doubtful debts
(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

5.

A debtors control account contains the following entries:

$

Balance brought forward at 1 January

21,400

Bank

102,000

Discounts allowed

8,125

Credit sales

120,100

There are no other entries in the account.

What is the closing balance carried forward at 31 December?

A.
B.
C.
D.
6.

$4,825
$11,525
$31,375
$47,625

From the following information, calculate the value of purchases.

Opening payables
Cash paid
Discounts received
Goods returned
Closing payables

A.
B.
C.
D.
7.

$
142,600
42,300
13,200
27,500
137,800

$78,200
$35,900
$65,000
$50,700

A supplier sends you a statement showing a balance outstanding of $15,350. Your own records
show a balance outstanding of $15,500.
The reason for this difference could be that

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

Question 08 and 09 relate to Franklin, who is reconciling the balance on his payables ledger
control account with the total of the list of balance on his payables ledger control account with the
total of the list of balances from his payables ledger.
What adjustments should be made for these errors?
8.

A debit balance of $200 on a suppliers account has been included in the list of balances as a credit
balance.

Control account List of balances

A.

Credit $400

increase total by $200

B.

Credit $200

reduce total by $400

9.

C.

No adjustment

reduce total by $400

D.

Debit $400

no adjustment

The purchases daybook has been overcast by $1,000.

Control account List of balances

10.

11.

A.

Debit $1,000

no adjustment

B.

Debit $2,000

reduce total by $2,000

C.

Credit $1,000

no adjustment

D.

No adjustment

increase total by $1,000

Which of the following would NOT lead to a difference between the total of the accounts balances
in the accounts receivable ledger and the balance on the accounts receivable ledger control
account?
A.

An error in totaling the sales journal

B.

An error in totaling the receipts column of the cash book

C.

An overstatement of an entry in a customers account in the accounts receivable ledger

D.

An entry posted to the wrong customer account in the accounts receivable ledger

The sales ledger control account of Dream Beds for the year ended 31 December 2010 is
shown below.

The schedule of trade receivables (debtors) extracted from the sales ledger at 31
December 2010 totalled $61 140.
The following errors were subsequently discovered:
1. A sale of $750 had been entered in Johns account in the sales ledger as $570. The
correct entry had been made in the sales journal.
2. An entry of $850 was correctly entered in Sameras account in the sales ledger, closing
the account owing to Sameras bankruptcy. No other entry had been made.
3. A sum of $120 discount allowed had been debited to Beachs account in the sales
ledger. The correct entry had been made in the cash book.
4. At 31 December 2010 the balances in Richards accounts were:
$
Purchases Ledger
2680 Credit
Sales Ledger
1980 Debit

It was decided to set off Richards balance in the sales ledger against the balance in the
purchases ledger. No entries had been made.
5. Goods to the value of $800 were sold to Claire in June 2010, and the account had not
yet been paid. Interest charges of $30 are to be applied on the overdue account, but no
entries for this had yet been recorded.
In addition a provision for doubtful debts of 10% on the new outstanding balance is to be
created.
6. Dream Beds had sent goods with a selling price of $400 on a sale or return basis to
Majit. Majit had not yet signified any intention to purchase the goods.
Dream Beds had considered the goods as sold, and made the relevant accounting
entries.
7. A page in the sales returns journal in October 2010 had been undercast by $1600. No
correction had yet been made.
REQUIRED
(a) Prepare the corrected sales ledger control account for the year ended 31 December
2010.
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(b) Prepare a statement reconciling the schedule of trade receivables (debtors) total with the
corrected balance in the sales ledger control account.
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(c) Explain two advantages of using a sales ledger control account.
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