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CIMA - BA3 > 7. Control Accounts > Flashcards

7. Control Accounts Flashcards

1
Q

What is a control account?

A

An account in the SFP which, when all transactions are settled, would have a nil balance (e.g. receivables and payables)

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2
Q

What is a memorandum ledger?

A

Ledgers containing all transactions by line from the sales, purchases and cash day books showing how much is owed from each individual customer/to each supplier

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3
Q

Do cash transactions appear in memorandum accounts?

A

No

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4
Q

What is a contra?

A

An entry in the ledger which cancels out, or ‘contras’ an opposite entry in another or the same ledger - made when we owe money to a supplier and they also owe money to us

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5
Q

What is the double entry for a contra of £200?

A

Dr Payables £200

Cr Receivables £200

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6
Q

What is the double entry made to clear bad debt from the receivables control account?

A

Dr Bad and Doubtful Debt expense

Cr Receivables control

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7
Q

How is a sale shown on the receivables control account?

A

Debit

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8
Q

How is a customer refund shown on the receivables control account?

A

Debit

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9
Q

How is a dishonored cheque shown on the receivables control account?

A

Debit

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10
Q

How is cash received shown on the receivables control account?

A

Credit

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11
Q

How are sales returns shown on the receivables control account?

A

Credit

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12
Q

How is irrecoverable debt shown on the receivables control account?

A

Credit

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13
Q

How is a contra shown on the receivables control account?

A

Credit

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14
Q

How is a purchase shown on the payables control account?

A

Credit

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15
Q

How is a supplier refund shown on the payables control account?

A

Credit

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16
Q

How is a cash payment shown on the payables control account?

A

Debit

17
Q

How is a purchase return shown on the payables control account?

A

Debit

18
Q

How are discounts received shown on the payables control account?

A

Debit

19
Q

How is a contra shown on the payables control account?

A

Debit

20
Q

Will a casting error in the daybook cause a difference between the amount in the control account and the memorandum account?

A

Yes

21
Q

Will a total from the book of prime entry posted to the wrong account in the nominal ledger be detected in reconciliation?

A

Yes - correct entries will have been made in the memorandum account

22
Q

Will a transaction recorded in the wrong customer/supplier account be detected in reconciliation?

A

No

CIMA - BA3 (18 decks)

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