quiz - control accounts

1. Where is discount received shown in a control account?

• credit side of the purchases ledger control account

• debit side of the purchases ledger control account

• credit side of the sales ledger control account

• debit side of the sales ledger control account

2. Which item would be recorded as a credit in a purchases ledger control account?

• Amounts paid to credit suppliers

• Contra with the sales ledger control account

• Discount received from credit suppliers

• Interest charged on late payment

3. Which item appears on the debit side of a sales ledger control account?

• Discount received

• Dishonoured cheque from customer

• Provision for doubtful debts

• Sales returns

4. Where are bad debts recorded in the control accounts?

• On the credit side of the purchases ledger control account

• On the credit side of the sales ledger control account

• On the debit side of the purchases ledger control account

• On the debit side of the sales ledger control account

5. Which statement is true about a sales ledger control account?

• Discount allowed appears on the credit side

• Discount allowed appears on the debit side

• Discount received appears on the credit side

• Discount received appears on the debit side

6. How do discount received and sales ledger contras appear in a purchases ledger control account?

• A

• B

• C

• D

7. What are advantages of maintaining control accounts?

1. They act as a deterrent against fraud as they provide an independent check.

2. They ensure all errors are discovered in the purchases and sales ledgers.

3. They provide totals of trade payables and trade receivables.

• 1 and 2 only

• 1 and 3 only

• 1, 2 and 3

• 2 and 3 only

8. Carlos is preparing his sales ledger control account.

Where will he obtain information about contra entries?

• cash book

• general journal

• purchases ledger

• sales ledger

9. Which would not appear in a sales ledger control account?

• bad debts written off

• cash discount allowed

• customer’s cheque dishonoured

• provision for doubtful debts

10. A business provided the following information.

• $1 750

• $6 650

• $16 550

• $21 450