Exam 20: Control Accounts

At the beginning of an accounting period a firm was owed £25,000 from its credit customers. During the year, the firm's credit sales amounted to £154,000 and cash sales were £14,000. It received £165,000 from its credit customers. Assuming there were no other transactions relating to the firm's credit customers, at the end of the accounting period the firm had trade receivables of:

The total of the balances in the purchase ledger control account is £3,000 more than the total of the individual balances on the personal accounts in the purchase ledger. Which of the following would explain the difference?

A debit entry of £50 on A's account in the books of B could have arisen by

In 20X0, in the accounts of X, the accountant created a provision for a doubtful debt of £100 in respect of Y. In 20X1 the accountant has found out that this debt is totally irrecoverable. Which of the following double entries is the correct way to deal with this new information in 20X1?

What is the balance on the trade receivables control account at 30/11/X2? The following information relates to Veronica Ltd. for the year ended 30 November 20X2:

A credit balance may appear on a sales ledger account when:

In the accounts of X, which of the following double entries is the correct way to record goods returned to Y, a credit supplier?

The balance on a purchases control account should agree with:

The closing balance should equal £15,050 when added together The sales ledger control account at 1 December had balances of £12,750 debit and £275 credit. During December sales of £25,000 were made on credit. Receipts from debtors amounted to £22,500 and cash discounts of £55 were allowed. Refunds of £130 were made to customers. The closing balances at the end of May could be:

The purpose of a sales ledger control account is to ensure that:

In a sales ledger control account, bad debts written off should be shown as:

What is the balance on the trade receivables control account at 31/12/X1? The following information concerns XYZ Ltd

Which of the following statements is not the purpose of a purchase ledger control account?

In the accounts of X, which of the following double entries is the correct way to record a historic credit sale that is now considered to be a bad debt in respect of Y, a credit customer?

At the start of a financial year a firm's gross trade receivables amounted to £10,000. At the end of the year this amount had increased by 20%. During the year £30,000 was received from credit customers and discounts totalling £2,000 were allowed to credit customers. Bad debts written off amounted to £4,000. Credit sales for the year were:

In a credit customer's account in the sales ledger, a bad debt written off should be shown as: