1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
Alex owns a wholesale business purchasing and selling goods on cash and on credit. Control accounts are used to check the accuracy of the individual purchases and sales ledger accounts. The following information is available for September 2024. Sales ledger account balances on 1 September 2024: $ Amounts owed by customers 64 280 Amount overpaid by one customer Totals from the books of prime entry: $ Cash book Cash sales 15 230 Receipts from credit customers 196 380 Discounts allowed 2 440 Refund of overpayment Sales journal 188 740 Sales returns journal 2 560 General journal Contras to purchases ledger 1 150 Prepare the sales ledger control account for September 2024. Sales ledger control account $ $ Additional information On 30 September 2024 the following information was available relating to trade payables. $ Total of balances in the purchases ledger 41 350 Balance of the purchases ledger control account 40 592 The following errors were discovered. When corrected the balance of the purchases ledger control account agreed with the total of the balances of the purchases ledger. The total of the purchases returns journal, $1 560, had been entered in the purchases ledger control account as $1 650. The balance of a trade payables account had been overstated by $80. A refund of $320 to a credit supplier had been recorded correctly in the cash book but posted to the credit side of the supplier’s account. The total of the discounts received column in the cash book had been understated by $68. Interest charged by a supplier on an overdue account, $16, had been omitted from the purchases ledger control account. Calculate the corrected total of balances in the purchases ledger. $ Original total 41 350 Corrected total Calculate the corrected balance of the purchases ledger control account. $ Original balance 40 592 Corrected balance
9706_w24_qp_23
THEORY
2024
Paper 2, Variant 3
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The sales ledger control account of a trader showed a debit balance of $28 500 at the end of the financial period. This did not agree with the total of the individual trade receivables accounts in the sales ledger. The following errors were discovered. A dishonoured cheque for $300 from a credit customer had been entered on the credit side of the sales ledger control account. Contras of $500 entered correctly in the sales ledger had been omitted from the sales ledger control account. Discounts allowed of $700 had not been entered in the sales ledger control account. Which figure should be used for trade receivables in the financial statements?
9706_m23_qp_12
MCQ
2023
Paper 1, Variant 2
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Questions Discovered
385