Control Accounts

Question 1

What are purpose of control accounts?

Answer 1

Reconcile ind ledger accounts and control accounts or calc missing figures

Question 2

The difference in a cash control account is generally referred to as the ………?

Answer 2

Balancing figure

Question 3

For sole trader what does balancing figure on debit side of cash control suggest

Answer 3

Omitted sales or capital introduced omitted

Question 4

For sole trader what does balancing figure on credit side of cash control suggest

Answer 4

Omitted expenses or drawings

Question 5

What would be the credit entries on a debtors ledger control account

Answer 5

Receipts from debtors, discounts allowed, contras, sales returned

Question 6

If J sells P goods on credit for £400 and P sells J goods on credit for £300 what would entries be in their respective debtors ledger control account

Answer 6

J Dr Credit sales £400 Cr contra P Dr credit sales £300 Contra £300

Question 7

If J sells P goods on credit for £400 and P sells J goods on credit for £300 what would entries be in their respective creditors ledger control account

Answer 7

J contra £300 purchases £300 P Contra £300 purchases £400

Question 8

If sales day book overcast by £10k what would be reconciliation in debtors ledger control?

Answer 8

Deduct £10,000

Question 9

If sales return of £5,100 incorrectly recorded as £5,010 in debtors control ledger what would be reconciliation?

Answer 9

Deduct £90

Question 10

What are the credit entries on a creditors ledger control account?

Answer 10

Payments to creditors, contras, discounts received, purchases returns

Question 11

If debit balancing figure in debtors.s ledger control what does this suggest?

Answer 11

Sales not recorded

Question 12

If credit balancing figure in creditors control ledger will give figure for>

Answer 12

Purchases not recorded

Question 13

For P+L what is discounts allowed treated as?

Answer 13

Expense