Control Account Class Question

STRATHMORE UNIVERSITY
SCHOOL OF ACCOUNTANCY
ACCA PART I CONTROL ACCOUNTS
1. The payables ledger control account below contains a number of errors.

Payables ledger control account
Bal b/f 318,600 Purchases 1,268,600

Cash paid 1,364,300 Contras 48,000
Purchases return 41,200 Discount received 8,200
Refund from suppliers 2,700 Bal c/f 402,000
1,726,800
1,726,800
Required: What should be the closing balance when all errors are corrected?
2. The following account has been extracted from a company`s nominal ledger.
Receivables ledger control account
Bal b/f 84,700 Irrecoverable debts 4,300

Contra 5,000 Discount allowed 30,780
Discount received 21,100 Cash received from credit sales 595,000
Credit sales 644,000
Cash sales 13,500 Increase in allowance for receivables 6,555
768,300 Bal c/f 131,655
768,300
Required: After corrections, what is the receivables balance?
3. Alston’s payables ledger control account is an integral part of the double entry system. Individual
ledger account balances are listed and totaled on a monthly basis, and reconciled to the control
account balance.
Information for the month of March is as follows:
(1) Individual ledger account balances at 31 March have been listed out and totaled $19,766.
(2) The payables ledger control account balance at 31 March is $21,832.
(3) On further examination the following errors are discovered:
– The total of discount received for the month, amounting to $1,715, has not been entered in the control
account but has been entered in the individual ledger accounts.
– On listing out, an individual credit balance of $205 has been incorrectly treated as a debit.
– A petty cash payment to a supplier amounting to $63 has been correctly treated in the control account,
but no entry has been made in the supplier’s individual ledger account.
– The purchases day book total for March has been under cast (understated) by $2,000.
– Contras (setoffs) with the receivables ledger, amounting in total to $2,004, have been correctly treated
in the individual ledger accounts but no entry has been made in the control account.
Required: Correct the Payables ledger account and prepare a Reconciliation statement.
4. Rayneydaze is a business selling umbrellas branded with corporate logos. The umbrellas are sold
in bulk lots on credit. The accountant is carrying out a reconciliation of the receivables ledger
control account balance, which is $172,120 to the total of the balances on the individual accounts
in the receivables ledger, which is $176,134.
The following has been found:
(1) A contra item of $1,500 has not been entered in the receivables ledger control account.
(2) A cheque for $555 from a customer has been dishonored. The correct double entry has been posted
but the individual accounts have not been updated.
(3) A payment of $322 from a customer has incorrectly been entered in the accounts receivable ledger as
$233.
(4) Discounts allowed totaling $120 have not been entered in the control account.
(5) Cash received of $800 has been debited to the individual customer’s account in the accounts
receivable ledger.
(6) Total credit sales of $4,500 to a large accountancy firm, Close &
Counter have been posted correctly to the ledger account but not recorded in the control account.
Required: Correct the receivables ledger control account and reconcile this to the sum total of the
individual accounts in the accounts receivable ledger.
5. The Receivables ledger control account as a 1st May had balances of $32,750 debit and $1,275
credit. During May sales of $125,000 were made on credit. Receipts from receivables amounted
to $122,500 and cash discounts of $550 were allowed. Refunds of $1,300 were made to
customers. The closing credit Balance is $2,000. What is the closing debit balance as at 31st
May?
6. Receivables ledger control Account below has been prepared by a trainee Accountant
20x5
1st Jan Balance 318,650 Cash from credit customers 181,140
Credit sales 161,770 Interest charged on overdue A/c 280
Cash sales 84,260 Irrecoverable debts written off 1,390
Discount allowed 1,240 Sales return from credit customers 3,990
Bal c/d 379,120
565,920 565,920
7. The following Receivables Ledger Control A/c prepared by trainee Accountant contains a number
of errors:
20x4
1st Jan Bal Credit sales
614,000 301,000
Cash from credit customers 311,000 Discount allowed 3,400
Contras 8,650 Irrecoverable debts written off 32,000
Interest charged on overdue accounts 1,600
Bal c/d
595,65
933,650
933,650
Required: Correct up the control account and state the new balance

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STRATHMORE UNIVERSITY

1. The payables ledger control account below contains a number of errors.

Bal b/f 318,600 Purchases 1,268,600

Bal b/f 84,700 Irrecoverable debts 4,300

Receivables ledger control account

Receivables ledger control account

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