1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Param uses control accounts to verify the accuracy of his business’s sales and purchases ledgers. He provided the following information for the month ended 30 April 2023 relating to trade receivables. $ Sales ledger balances, 1 April 2023 Debit 14 890 Credit Contra entries with the purchases ledger 1 850 Credit sales 153 480 Credit customers’ cheques returned Discounts allowed 4 830 Interest charged on overdue accounts Irrecoverable debts written off 1 830 Receipts from credit customers 148 200 Returns inwards 2 790 There were no credit balances in the sales ledger on 30 April 2023. REQUIRED Prepare the sales ledger control account for April 2023. Dates are not required. Sales ledger control account $ $ Identify the books of prime entry for each of the following: discounts allowed irrecoverable debts written off. State three benefits of maintaining control accounts. Additional information The balance of the sales ledger control account at 30 April 2023 did not agree with the total of the individual customer account balances at this date. The following errors were discovered, some of which affected the sales ledger control account and some of which affected the customer account balances. Returns inwards of $720 had been credited to the account of Rafiq Stores instead of Raif Stores. A sales invoice for $820 had been omitted from the books of account. The balance of a credit customer’s account, $430, had been brought down as $340. The total of the returns inwards journal had been understated by $470. Interest of $40 charged on an overdue account had been correctly entered in the journal but had been credited to the customer’s account. REQUIRED Calculate the revised sales ledger control account balance at 30 April 2023.
9706_s23_qp_21
THEORY
2023
Paper 2, Variant 1
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The purchases ledger control account for a business shows a closing balance of $7640. The following items were then discovered. A purchase invoice for $250 had been entered in the purchases ledger but not in the purchases journal. A sales ledger contra of $630 had not been entered. A supplier’s account with a debit balance of $70 had been omitted from the control account. Returns inwards of $540 had been entered on the debit side of the control account. What was the credit balance to carry down after adjusting for these items?
9706_s24_qp_13
MCQ
2024
Paper 1, Variant 3
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Questions Discovered
1775