1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
The following information has been extracted from the accounts of Harvey Rabbit for the year ended 31 March 2010. $ Sales ledger balance at 1 April 2009 29 040 Credit sales 499 892 Cash sales 14 634 Credit sales returns 9 878 Receipts from debtors, banked 462 680 Discount allowed on credit sales 21 404 Bad debts written off 9 510 Debtors’ cheques dishonoured Contra entries 1 153 REQUIRED Prepare Harvey Rabbit’s sales ledger control account for the year ended 31 March 2010. The total of Harvey Rabbit’s sales ledger balances at 31 March 2010 was $26 845, which did not agree with the closing balance of his sales ledger control account. On checking his accounts he discovered the following errors. A credit note for $420 which had been sent to a debtor had been entered in the sales journal (day book) and posted as a sale to both accounts. A debit entry in the sales ledger for $698 had been set off as a contra entry in the purchases ledger, but no entry had been made in the control accounts. The discount allowed account had been overstated by $310. A sales invoice for $998 had been completely omitted from the accounts. A debit balance of $2102 had been omitted from the list of debtors. A debtor who owed $896 had been declared bankrupt during March 2010. The debt had been written off in the control account, but no entry had been made in the debtor’s account. A receipt for $630 had been debited to the bank account but omitted from the debtor’s account. An entry for $816 in the sales journal (day book) had not been posted to the debtor’s account. A sales ledger account had been understated by $200. 10 A page of the sales journal (day book) with entries totalling $3856 had been omitted from total sales. The amounts had, however, been posted to the debtors’ accounts. REQUIRED Beginning with the closing balance which you have calculated in , prepare a statement showing the amended balance on the control account. Amendments to sales ledger control account Beginning with Harvey Rabbit’s sales ledger balance of $26 845, prepare a statement amending the total of the sales ledger balance to agree with the new control account balance. State three advantages of keeping control accounts.
9706_s10_qp_23
THEORY
2010
Paper 2, Variant 3
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Questions Discovered
1775