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Control Account

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

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

a)

to calculate the amount owed to suppliers

b)

to calculate the accuracy of the sales ledger

c)

to calculate total sales

d)

to make the trial balance totals agree

2.

What would appear in a Purchases Ledger Control account?

a)

returns outward

b)

cash purchases

c)

refund to credit customer

d)

discounts allowed

3.

Which would not appear in a sales ledger control account?

a)

returns inwards

b)

cash sales

c)

customer's cheque dishonoured

d)

Irrecoverable debts

4.

Which would not appear in a purchases ledger control account?

a)

payments to suppliers

b)

Cash purchases

c)

interest charged by suppliers

d)

discount received

5.

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

a)

ledger accounts

b)

sales invoices

c)

books of prime entry

d)

bank statements

6.

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

a)

amount owed by customers

b)

total sales

c)

amount owed to customers

d)

total credit sales

7.

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?

a)

$2 000   

b)

$14 000

c)

$18 000    

d)

$52 000

8.

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?

a)

$50 000    

b)

$95 000   

c)

$155 000

d)

$75 000

9.

Which does not appear in a purchase ledger control account?

a)

goods returned to suppliers

b)

discount received

c)

irrecoverable debts

d)

interest charged by suppliers

10.

Which would appear in a purchases ledger control account?

a)

cash received from customers

b)

cash paid to suppliers

c)

cash purchases

d)

cash discount allowed