1.2. The accounting system
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 134 questions
The following balances appear in Reena’s purchases ledger control account at 29 February 2020. $ Total of amounts due to credit suppliers 27 450 Total of a credit supplier’s account which had been overpaid The bookkeeper extracted the following information from the books of prime entry for March 2020. $ Purchases journal 32 480 Purchases returns journal 1 430 Cash book: cash purchases 7 290 Cash book: payments to credit suppliers 26 980 Cash book: totals of discounts columns Debit column in cash book 1 780 Credit column in cash book 1 060 General journal Contra entries sales ledger to purchases ledger Interest charged by credit suppliers on overdue accounts At 31 March 2020 there were no overpaid suppliers’ accounts. REQUIRED Prepare the purchases ledger control account for March 2020. Purchases ledger control account $ $ State three reasons why a business may prepare a purchases ledger control account. Additional information The bookkeeper also prepared a sales ledger control account for March 2020. However, the balance of the control account did not agree with the total of balances of accounts in the sales ledger. The following errors were discovered which accounted for the difference. The total of the sales returns journal had been overcast by $160. The balance of a sales ledger account had been undercast by $150. An entry in the sales journal for Susan Baker, $370, had been posted as a debit entry in the sales ledger account of Sarah Barker. The bank statement for 31 March 2020 recorded the return of a cheque for $420 received from a credit customer. This transaction had not yet been recorded in the books of account. An entry in the general journal to write off the balance of the account of J Limited, $230, as irrecoverable had been posted to the debit side of the customer’s account. REQUIRED Complete the following table to reconcile the sales ledger control account balance with the total of the sales ledger balances. Error 1 has been completed for you as an example. sales ledger control account balance total of sales ledger balances $ $ Incorrect figures 14 850 15 320 Error 1 – Error 2 Error 3 Error 4 Error 5 Corrected figures
9706_s20_qp_23
THEORY
2020
Paper 2, Variant 3
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Questions Discovered
134