Control Accounts

Where is discount received shown?

• credit side of the Trade Payable ledger control account

• debit side of the Trade Payables ledger control account

• credit side of the Trade Receivable ledger control account

• debit side of the Trade Receivables ledger control account

Which item appears on the debit side of a trade receivables ledger control account?

• discount received

• dishonoured cheque from customer

• provision for doubtful debts

• sales returns

Which account or statement provides a summary of transactions involving trade receivables?

• bank reconciliation statement

• provision for doubtful debts account

• trade receivables ledger control account

• statement of financial position

Which statement about the division of the ledger is not correct?

• Checking procedures can be introduced.

• Fewer entries are needed in the sales and purchases accounts.

• It is easier for reference and for locating accounts.

• Work can be shared between two or more book-keepers.

Which statement is true about a trade receivables 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.

Harpreet is a credit customer of Suzanna. Harpreet’s account in Suzanna’s books shows a credit balance.

How could the credit balance have arisen?

• A cheque from Harpreet was dishonoured.

• Harpreet has overpaid his account.

• Interest was charged by Suzanna.

• Suzanna offered a trade discount.

Zara provided the following information for the year ended 31 December 2018.

How much were the credit sales for the year?

• $11 400

• $12 900

• $15 700

• $17 200

Where would a dishonoured cheque from a customer be recorded in the books of the supplier?

• credit side of the trade payables ledger control account

• credit side of the trade receivable ledger control account

• debit side of the trade payables ledger control account

• debit side of the trade receivables ledger control account

A trade receivables ledger control account showed the following entries.

What is the missing entry?

• discount allowed $170

• discount allowed $330

• discount received $170

• discount received $330

Where are Irrecoverable debts recorded in the control accounts?

• on the credit side of the trade payables ledger control account

• on the credit side of the trade receivables ledger control account

• on the debit side of the trade payables ledger control account

• on the debit side of the trade receivables ledger control account