TQ1: CHAPTER 8 - CONTROL ACCOUNTS AND CONTROL ACCOUNT RECONCILIA

Which of the following items should NOT be on the credit side of accounts

payable control account?

• A- Total of purchases day book

• B- Interest charged by suppliers

• C- Transfer of debit balance to accounts receivable ledger

• D- Set offs

The advantages of control accounts do NOT include

• A- Locating errors

• B- Facilitating the extraction of trial balance

• C- Detecting fraud

• D- Discouraging adherence to double entry principle

Given opening account receivables of 2,300,000 KHR, revenue of 9,600,000

KHR and receipts from customers of 9,000,000 KHR, the closing account

receivables balance should be

• A/ 1,700,000 KHR

• B/ 2,900,000 KHR

• C/ 3,700,000 KHR

• D/ 12,700,000 KHR

A business has a balance on its payables ledger control account of 21,600,000

KHR but the total of the list of ledger balances in the payables ledger is

21,770,000 KHR.

The following errors have been discovered:

(i) A credit note from a supplier for 100,000 KHR had been recorded in the

purchases day book as an invoice.

(ii) The purchases returns day book was undercast by 10,000 KHR

(iii) A debit balance of 90,000 KHR was listed in the list of balances from the

payables ledger as a credit balance

What is the figure that should appear as trade payables in the trial balance?

• A/ 21,600,000 KHR

• B/ 21,770,000 KHR

• C/ 21,390,000 KHR

• D/ 21,490,000 KHR

Which of the following is NOT a feature of a control account?

• A- It is maintained by the financial controller

• B- It is used to check arithmetical accuracy of the ledger to which it relates

• C- The ledger to which it relates is known as self-financing

• D- It contains the total of entries in individual accounts

Which of the following describes a control account?

• A- Conglomerate of ledger system

• B- Combined ledger system

• C- Self balancing ledger system

• D- Standardized ledger system

Which of the following errors would be likely to be identified by performing a

receivables ledger control account reconciliation?

1- Omission of a credit note from the sales returns day book

2- Overcast of the sales day book

3- Transposition error when recording a cheque receipt in the cash book

4- Omission of a balance from the list of receivables ledger balances

• A/ All four errors

• B/ 1, 2 and 4 only

• C/ 2 and 3 only

• D/ 2 and 4 only

What should be the closing balance on this account when the errors have been

corrected?

• A/ 221,700,000

• B/ 244,300,000

• C/ 275,500,000

• D/ 251,500,000

Which of the following result in a debit entry to the payables account?

(1) Cash paid to suppliers

(2) Purchase returns

(3) Discounts received

(4) Contra with receivables

• A/ All of them

• B/ None of them

• C/ 1 only

• D/ 1, 3 and 4

What should the closing balance be after correcting the errors made in preparing

the account?

• A/ 130,600,000 KHR

• B/ 129,200,000 KHR

• C/ 142,400,000 KHR

• D/ 214,600,000 KHR