1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 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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Nibras purchases and sells goods for cash and on credit. Control accounts are used to check the accuracy of the business’s purchases and sales ledgers. The following information is available for January 2022. Purchases ledger account balances at 1 January 2022 were: $ Amounts owed to suppliers 23 490 Amount overpaid to one supplier Totals from the books of prime entry were as follows: $ Cash book Cash purchases 18 540 Payments to trade payables 202 950 Discounts received 4 920 Purchases journal 212 480 Returns outwards journal 3 770 General journal Contras to sales ledger There were no overpaid accounts in the purchases ledger at the end of the month. REQUIRED Prepare the purchases ledger control account for January 2022. Purchases ledger control account $ $ Additional information On 31 January 2022 the following information was available concerning trade receivables. $ Balance of the sales ledger control account 25 310 Total of balances in the sales ledger 23 980 The following errors were discovered. When corrected, the total of balances in the sales ledger agreed with the balance of the sales ledger control account. An irrecoverable debt of $540 had been recorded as $450 in both the general ledger and the customer’s sales ledger account. The total of the returns inwards journal, $1390, had been omitted from the sales ledger control account. The balance of a customer’s account had been understated by $120. A credit note, $90, issued to a credit customer had been recorded correctly in the sales return journal but posted to the debit side of the customer’s account. REQUIRED Calculate the correct balance of the sales ledger control account. Calculate the correct total of balances in the sales ledger. Additional information Control accounts do not reveal every type of error. REQUIRED State three types of error which are not revealed by a control account.
9706_s22_qp_23
THEORY
2022
Paper 2, Variant 3
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Questions Discovered
1775