Which of the following is not a reason for preparing a monthly sales ledger control account?
checking each entry recorded in the trade receivables' accounts in the sales ledger
preventing and reducing fraud, as the control account and sales ledgers are prepared by different people
providing a summary of the trade receivables' transactions during the month
proving that the sales ledger entries are arithmetically correct
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Why is a purchases ledger control account prepared?
to enable the income statement to be prepared quickly
to ensure that all purchases ledger accounts are accurate
to provide a summary of transactions with credit suppliers
to show the amount owed to each trade payable
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Which of the following statements about a purchases ledger control account is not correct?
It assists in the location of errors.
It ensures deadlines are met to receive cash discounts.
It helps to prevent fraud.
It provides a quick total of trade payables.
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Bheka is preparing his sales ledger control account. He needs to know:
the total for cash discounts allowed to credit customers
the amount of credit customers' debts which have been written off as irrecoverable
Where can he find this information?
cash discounts | irrecoverable debts | |
|---|---|---|
A | cash book | irrecoverable debts account |
B | cash book | general journal |
C | discounts allowed account | irrecoverable debts account |
D | discounts allowed account | general journal |
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A sales ledger control account had a debit balance of $13 500.
It was found that a $1 500 entry for irrecoverable debts had been entered on the wrong side of the sales ledger control account.
What was the correct debit balance on the sales ledger control account?
$10 500
$12 000
$15 000
$16 500
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Medea provided the following information.
$ | ||
October 1 | sales ledger control account balance | 550 debit |
31 | credit sales | 605 |
cheques received from trade receivables | 350 | |
irrecoverable debts written off | 90 | |
cheque received from credit customer dishonoured | 35 |
What was the debit balance on the sales ledger control account on 31 October?
$680
$750
$805
$860
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Anika's ledger contained the following partly competed account.
Purchases ledger control account
$ | $ | ||||
Oct 31 | bank | 35 000 | Oct 1 | balance b/d | 1 030 |
discount received | 850 | 31 | purchases | 40 500 |
The following entries still need to be recorded in the account.
Credit suppliers charged $75 interest for overdue payments.
Balances owing in the purchases ledger totalling $575 were set off against balances in the sales ledger.
What will the closing balance on the purchases ledger control account be after these entries are made?
$5030
$5180
$6180
$6330
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Why is the person who prepares a sales ledger control account usually not the same person who maintains the sales ledger?
to assist with preparing financial statements
to find errors
to prevent fraud
to provide a total of trade receivables
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Which one of the following would be recorded on the debit side of a sales ledger control account?
bank transfers from credit customers
cash refunded to credit customers
discount allowed
sales returns
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On 1 January, Kylsha's sales ledger control account had a debit balance of $3 100.
During January, $14 000 was received from credit customers, and a debt of $150 was written off as irrecoverable. On 31 January, credit customers owed Kylsha $2 500.
What was the total of credit sales in January?
$11 650
$13 400
$13 550
$16 950
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