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WorksheetsIrrecoverable Debts & Control Accounts
Total questions: 20
Worksheet time: 10mins
What is Provision for Doubtful Debts
Asset
Liability
Expense
Loss
Provision for Dountful Debts is calculated on
Trade receivable
Trade receivable - Irrecoverable Debts
Irrecoverable Debts
Current Asset
Which accounting principle is applicable for Provision for doubtful debts
Matching
Prudence
Matching & Prudence
None
Control accounts is prepared for
Trade Receivable
Trade Payable
Trade Receivable & Trade Payable
None
Provision for Doubtful Debts is recorded in
Control Accounts
Income Statement
Sales Ledger
Sales Journal
Credit Control refers to
establishing credit limit
Monitoring of customers account
Obtaining credit reference from new customers
All 3
When old provision is more than new provision
Debit Income Statement Credit Provision
Debit Provision Credit Income Statement
Debit Irrecoverable Debts Credit Provision
Debit Trade Receivable Credit Provision
Recovery of Debts written off means
Money received from old Trade Receivable
Money received from new Trade Receivable
Money received from a debt earlier treated as Irrecoverable debt
Money received from writing back excess provision
Contra in Control Accounts mean
Same person is a debtor as well as a creditor
Cash deposited into bank
Cash withdrawn from bank
Debtors account balance is adjusted with Creditors account balance
Sales figure in Control account is taken from
Sales Ledger
Sales Journal
Sales Account
Cash Book
Discount received in Control Account is recorded from
Purchase Ledger
Purchase Journal
Purchase Account
Cash Book
Contra entry is
PLC Dr SLC Cr
SLC Dr PLC Cr
PLC Dr Trade Payable Cr
SLC Dr Trade Receivable Cr
Control Accounts helps in controlling
Selling expenses
Provision for doubtful debts
Irrecoverable debts
Collection from Debtors
Advantage of Control Accounts are
assist in locating errors
proof of arithmetical accuracy
reduces fraud
All 3
Interest charged on overdue account is written in Control Account from
Cash Book
General Ledger
Sales Ledger
Purchase Ledger
Refund from credit supplier is recorded in Control Account from
Cash Book
Purchase ledger
Purchase Journal
Purchase Account
A contra entry is also known as
Inter ledger transfer
Cash account to bank account transfer
Intra ledger transfer
Journal to Ledger transfer
Sales Ledger Control Account does not include
Provision for Doubtful Debts
Cash sales
Discount received
All 3
Sales Ledger Control Account will have debit balance due to
over payment or advance payment by a customer
customer returns goods after paying the account
cash discount not being deducted before payment was made
All 3
What is Irrecoverable Debts
Asset
Liability
Expense
Loss
