1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Usman has extracted the following information from his books of account in order to update the sales ledger control account for the month of August 2022. $ Balance brought down at 1 August 2022 34 210 Cheque receipts from credit customers 32 840 Customers’ dishonoured cheques 1 020 Sales journal totals 29 760 Sales returns journal totals Usman has produced a list of all customer account balances at 31 August 2022 totalling $30 477. He has discovered the following: The total of the sales journal had been overcast by $600. Discounts allowed of $218 had been entered in customers’ accounts but no entries had been made in the control account. A contra for $325 had been correctly entered in both the customer’s account and the supplier’s account. A customer’s overpayment of $65 had been repaid by cheque but no entries had been made in the books of account. A cheque received from Musa for $250 had been posted to the account of Hussein. An irrecoverable debt of $180 had been correctly written off in a customer’s account but had not been entered in the control account. A credit balance of $315 on a customer’s account had been incorrectly entered as a debit balance in the list of customer account balances at 31 August 2022. REQUIRED Prepare the updated sales ledger control account for the month of August 2022. Sales ledger control account $ $ Balance b/d 34 210 Prepare an amended total of customer account balances to agree with the sales ledger control account balance in . $ Original total of customer account balances 30 477 State one limitation of preparing a control account. Explain why a sales ledger control account would help in the prevention of fraud.
9706_w22_qp_22
THEORY
2022
Paper 2, Variant 2
View
The closing balance of a purchases ledger control account was $7480. It did not agree with the total of the suppliers’ balances in the purchases ledger. The following two errors were found. An error of original entry occurred when a credit note from a supplier for $120 had been recorded as $210. Interest charged on an overdue supplier’s account of $40 had been debited to the purchases ledger control account. What is the corrected balance of the purchases ledger control account?
9706_w23_qp_13
MCQ
2023
Paper 1, Variant 3
View
Malik prepared a sales ledger control account for July 2023. However, the balance of the control account did not agree with the total of customers’ account balances in the sales ledger. He provided the following information. $ At 1 July 2023 Sales ledger control account balance 76 250 For the month of July 2023 Contra purchases ledger Sales journal 69 634 Cash book: customer cheques dishonoured Cash book: discounts allowed Journal: irrecoverable debts Cash book: receipts from credit customers 74 118 Sales returns journal 2 090 The following errors were discovered which accounted for the difference. The balance of a sales ledger customer’s account had been undercast by $300. The total of the sales returns journal had been overcast by $580. A journal entry to write off a customer account balance of $95 as irrecoverable had been correctly entered in the general ledger but had been posted to the debit side of the customer’s account. A cheque received from a customer, $320, had been correctly entered in the cash book but had been posted to the debit side of the customer’s account as $230. A further dishonoured cheque from a customer, $215, had not been entered in the cash book but had been correctly entered in the customer’s account. The list of customer account balances extracted from the sales ledger totalled $69 211. Prepare the sales ledger control account for the month of July 2023, taking into account the errors discovered. Dates are not required. Sales ledger control account Details $ Details $ Prepare a schedule of the corrected sales ledger account balances. Increase $ Decrease $ Total $ Per original list 69 211 Corrected balances State two limitations of preparing a control account.
9706_w23_qp_22
THEORY
2023
Paper 2, Variant 2
View
The opening balance on a purchases ledger control account was $18400. The following errors or omissions were then discovered. A supplier’s invoice for $860 had been entered as $680 in the purchases journal. An item for $250 in the purchases returns journal had been credited to the supplier’s account. Discounts received of $400 had been credited to the purchases ledger control account. It had been agreed to set-off $150 owing to a customer against their account in the sales ledger. No entries had been made to the sales or purchases ledger control accounts. What was the corrected balance on the purchases ledger control account?
9706_w24_qp_11
MCQ
2024
Paper 1, Variant 1
View
A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42 650. The following errors or omissions were discovered. An irrecoverable debt of $500 in the general journal has not been recorded in the sales ledger. The sales journal has been incorrectly added and must be reduced by $750. The sales ledger control account includes the discount received of $400. It should have been discount allowed, $600. Sales to J Brown of $640 have not been entered in his account. What was the correct total of the sales ledger balances?
9706_w24_qp_12
MCQ
2024
Paper 1, Variant 2
View
At the end of the year, the balance on a firm’s sales ledger control account was $12900. The total of the customers’ accounts in the sales ledger was $11900. The following errors were then discovered. A customer’s account had been undercast by $700. A contra with a supplier in the purchases ledger of $200 had only been entered in the sales ledger control account. The discount allowed column in the cash book totalled $500. This had not been posted to the nominal ledger. What was the correct balance on the sales ledger control account?
9706_w24_qp_13
MCQ
2024
Paper 1, Variant 3
View
A book-keeper makes the following adjustments to ledger accounts before making transfers to the statement of profit or loss for the period. The insurance expense account is debited for a prepaid amount. The account for rent received is debited for an amount received in advance. The allowance for irrecoverable debts account is debited for the reduction in the allowance. The provision for depreciation on machinery account is debited for the annual depreciation charge. Which entries are correct?
9706_w24_qp_13
MCQ
2024
Paper 1, Variant 3
View
Questions Discovered
1775