Control Accounts

The total amount of money received from debtors, in addition to being recorded in the bank account, should be . . .

• credited to the sales account.

• credited to the debtors control account.

• debited to the debtors control account.

• debited to the sales account.

In a sales ledger control account, bad debts written off should be shown as . . .

• a debit.

• a balance carried down.

• a credit.

• both a debit and a credit.

The balance on a firm's debtors control account at the end of a year should agree with . . .

• the total of the firm's sales for that year.

• the amount of money received from debtors during the year.

• the total of debtors which are outstanding for more than one year.

• the total of its list of debtors outstanding at the year-end.

The balance on a firm's creditors control account at the end of an accounting period should equal . . .

• the total amount which the finn paid to its creditors during the period.

• the firm's total purchases for the period.

• the total of its list of creditors outstanding at the end of the period.

• the cost of the firm's sales for the period.

A credit balance brought down on a debtors control account cannot be explained by . . .

• a credit note issued to a debtor immediately after he had paid his account in full.

• a debtor paying more than the amount owed by him.

• unrecorded returns outwards.

• discount allowed recorded twice in the debtors control account.

Over the course of an accounting period, the amount owed to a firm by its debtors increased by £50,000. During the period, credit sales totalled £230,000 and money received from debtors amounted to £190,000. The £10,000 apparent discrepancy could be due to unrecorded . . .

• discount allowed.

• bad debts.

• sales returns.

• credit sales.

At the beginning of an accounting period a firm owed its creditors £15,000. During the period, the firm's credit purchases amounted to £87,000 and it paid £94,000 to its creditors.

Assuming there were no other transactions relating to creditors, at the end of the accounting period the firm owed its creditors . .

• £7,000

• £8,000

• £14,000

• £22,000

At the beginning of an accounting period, a firm was owed £900 by its debtors. At the end of the same accounting period the firm's debtors owed £1,500. During the period, a bad debt of £100 was written off and £5,000 was received from credit customers.

The total of the firm's credit sales for the period was:

• £3,700

• £4,200

• £5,700

• £5,900

Over the course of an accounting period the amount owed by a firm to its creditors decreased by £20,000. During the period the firm's purchases totalled £950,000, of which 80% were on credit. The firm did not receive any discount from its suppliers during the period. On the basis of the foregoing information, the amount which the firm paid to its creditors during the period was:

• £740,000

• £760,000

• £780,000

• £930,000

Given the following information, calculate the amount owed to a firm by its debtors at 31 December.

• £8,500

• £14,500

• £18,500

• £83,500