Chapter Ten- Control Account Reconciliations

Question 1

Contra Entry

Answer 1

An amount owed by a customer which is set off against an amount owed to a customer as a supplier

Question 2

Gross Pay

Answer 2

The salary or wages payable to an employee before any statutory or voluntary deductions

Question 3

Her Majesty’s Revenue and Customs (HMRC)

Answer 3

The UK Government department responsible for taking tax

Question 4

Income Tax

Answer 4

A tax that is paid by individuals on all sources of income, including salary and wages

Question 5

National Insurance Contributions: Employees NIC

Answer 5

A tax on employees’ income deducted from gross pay

Question 6

National Insurance Contributions: Employers NIC

Answer 6

An additional tax suffered by the employer based on the employees gross pay

Question 7

Payroll Transactions

Answer 7

Payments to employees in respect of salaries and wages

Question 8

Pension Contribution

Answer 8

A form of voluntary deduction from employees, and a contribution from employers which is paid to the pension administrator to provide a pension for employees on retirement

Question 9

Payables Ledger Control Account Reconciliation

Answer 9

An exercise which agrees the balance on the payables ledger control account to the total of the list of balances in the payables ledger

Question 10

Receivables Ledger Control Account Reconciliation

Answer 10

An exercise which agrees the balance on the receivables ledger control account to the total of the list of balances in the receivables ledger

Question 11

Wages Control Account

Answer 11

Control account to record net wages and ensure the double entry is posted correctly