Control Account

X maintains a control account for his sales ledger. What is the purpose of this control account?

• to calculate the amount owed to suppliers

• to calculate the accuracy of the sales ledger

• to calculate total sales

• to make the trial balance totals agree

What would appear in a Purchases Ledger Control account?

• returns outward

• cash purchases

• refund to credit customer

• discounts allowed

Which would not appear in a sales ledger control account?

• returns inwards

• cash sales

• customer's cheque dishonoured

• Irrecoverable debts

Which would not appear in a purchases ledger control account?

• payments to suppliers

• Cash purchases

• interest charged by suppliers

• discount received

What are the sources of information for entries in control accounts?

• ledger accounts

• sales invoices

• books of prime entry

• bank statements

What does a debit balance on a sales ledger control account represent?

• amount owed by customers

• total sales

• amount owed to customers

• total credit sales

On 1 August Lim owes his suppliers $16 000. The purchases journal for August totalled $25 000. Payments to suppliers during the month amounted to $27 000. There were no cash purchases.

How much is owed by Lim to his suppliers on 31 August?

• $2 000   

• $14 000

• $18 000    

• $52 000

The sales ledger control account had a balance of $125 000 at the beginning of the month, and a balance of $105 000 at the end of the month. The credit sales were $75 000. How much was paid by the customers?

• $50 000    

• $95 000   

• $155 000

• $75 000

Which does not appear in a purchase ledger control account?

• goods returned to suppliers

• discount received

• irrecoverable debts

• interest charged by suppliers

Which would appear in a purchases ledger control account?

• cash received from customers

• cash paid to suppliers

• cash purchases

• cash discount allowed