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Control Accounts

Total questions: 10

Worksheet time: 26mins

Name
Class
Date
1.

Control account is set up in the ________.

a)

Subsidiary Ledger

b)

General Journal

c)

General Ledger

d)

Cash Book

2.

What is the main purpose of preparing Control Accounts?

a)

To simplify the procedure of recording Debtors and Creditors Ledger.

b)

To ensure that the bookkeeper has recorded all the transactions correctly in Cash Book.

c)

To enable General Ledger to be completed more speedily.

d)

To improve the accuracy of recording individual debtors and creditors accounts

3.

The balance of the Debtors Control Account did not agree with the balances in the Debtors Ledger. Which of the following statements are true?


I Sales Journal had been overstated.

II Goods returned from a customer had not been recorded in the books.

III A dishonoured cheque from a customer had not been recorded in the books.

IV A contra entry had been entered in the Debtors Ledger only.

a)

I, II

b)

I, IV

c)

II, III

d)

III, IV

4.

The accounts that appear in the Sales Ledger are _________.

a)

customers’ personal accounts

b)

Suppliers’ personal accounts

c)

Debtors Control Account

d)

Sales and Sales Returns Accounts

5.

How should the amount of bad debts written off be recorded in Sales Ledger Control Account?

a)

Debited to the account

b)

Credited to the account

c)

Carried down in the account

d)

Debited and credited to the account

6.

In a firm’s Sales Ledger, there is a credit balance of RM 2,568 in ABC Company’s account. What does this mean?

a)

A cheque of RM 2,568 issued by ABC Company was dishonoured.

b)

RM 2,568 owed by ABC Company is a bad debt.

c)

The firm owed RM 2,568 to ABC Company.

d)

ABC Company owed RM 2,568 to the form.

7.

The following information related to a firm :


Balance as at 1 January 2013 :

Debtors RM 50,000; Allowance For Doubtful Debts RM 5,000


The following are the balances extracted from the books of the firm for the year 2013:

Credit Sales RM 100,000; Cash Sales RM 80,000; Receipts from credit customers RM 75,000; Bad Debts written off RM 2,000.


What is the balance of the firm’s Debtors Control Account as at 31 December 2013?

a)

RM 43,000

b)

RM 68,000

c)

RM 73,000

d)

RM 153.000

8.

The following shows the information of a company for the year ended 31 Dec 2014:


Debtors Control Account, 1 Jan 2014 RM 4,410

Allowance For Doubtful Debts, 1 Jan 2014 RM 200

Increase in Allowance For Doubtful Debts RM 20

Discounts Allowed RM 120

Bad Debts Written Off RM 150

Sales (including cash sales of RM 5,600) RM 9,200

Receipts from debtors RM 3,240


What is the balance of the Debtors Control Account on 31 Dec 2014?

a)

RM 4,480

b)

RM 4,500

c)

RM 9,880

d)

RM 10,100

9.

The item “Purchases” that is entered in the Purchases Ledger Control Account refers to which of the following items?

a)

Total cash purchases

b)

Total cash purchases and total credit purchases

c)

Total credit purchases after deducting purchases returns

d)

Total credit purchases before deducting purchases returns

10.

How do you record an overpayment refunded by suppliers in Purchases Ledger Control Account?

a)

The account is debited.

b)

The account is credited.

c)

The account is debited with double amount.

d)

The account is credited with double amount.