IGCSE Control Accounts
IGCSE Control Accounts
IGCSE Control Accounts
REQUIRED
Vijay Singh
Sales ledger control account
2
(b) Explain the contra entry to the purchases ledger.
(d) State one reason why Vijay Singh prepares a monthly sales ledger control account.
(e) State two reasons why Vijay Singh does not use the information contained in the sales
ledger to prepare the sales ledger control account.
(b) Why is inventory valued at net realisable value when this is lower than cost?
3
3 Kriti provided the following information.
REQUIRED
(a)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
(b) Prepare the sales ledger control account for the year ended 31 December 2014. Balance
the account and bring down the balance on 1 January 2015. See next page.
4
Kriti
Sales ledger control account
(c) State two reasons why Kriti maintains a sales ledger control account.
1___________________________________________________________________
____________________________________________________________________
2___________________________________________________________________
____________________________________________________________________
(d) State one reason why a credit balance on a sales ledger control account can arise.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
(e) State why a sales ledger control account does not contain an entry for a provision for
doubtful debts.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
5
4 Esme provided the following information.
At 1 January 2014 $
1 Esme owed $100 to a supplier who also owed $180 to Esme. It was agreed to record
this as a setoff in the control accounts.
2 Esme owed $50 to a credit customer who had overpaid.
REQUIRED
(a) Prepare the sales ledger control account and the purchases ledger control account for
the year. Balance the accounts and bring down the balances on 1 January 2015. See next
page.
6
7
(b) State one reason why Esme maintains a sales ledger control account.
______________________________________________________________
______________________________________________________________
______________________________________________________________
5 The sales journal for March 2017 was destroyed, but Waheed was able to provide the following
information.
REQUIRED
(a) Select the relevant figures and prepare the sales ledger control account for the month of
March 2017. Insert a figure for credit sales.
Balance the account and bring down the balances on 1 April 2017. See next page.
8
(b) Suggest two reasons why the sales ledger control account had a credit balance on 1
April 2017.
1 ................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
..............................................................................................................................................
9
6 Simran had further transactions in the period 2 February to 28 February 2017. These were as
follows:
10
7 Which item would be recorded as a credit entry in a purchases ledger control account?
8 Kumu purchases goods for resale on both cash and credit terms.
Kumu provided the following information for the year ended 30 April 2018.
REQUIRED
(a) Select the relevant items and prepare the purchases ledger control account for the year
ended 30 April 2018. Insert the amount paid to credit suppliers. See next page.
Kumu
Purchases ledger control account
11
(b) State the formula for calculating the trade payables payment period.
...................................................................................................................................................
...............................................................................................................................................
(c) Calculate the trade payables payment period for the year ended 30 April 2018. Round up
your answer to the next whole day.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
....................................................................................................................................................
(d)
Satisfied? ...................................................................................................................................
Reason ......................................................................................................................................
...................................................................................................................................................
...............................................................................................................................................
(e) State two problems Kumu may face if her trade payables payment period is unsatisfactory.
1.................................................................................................................................................
...................................................................................................................................................
2.................................................................................................................................................
...............................................................................................................................................
12
9 Which item appears on the debit side of a sales ledger control account?
11 Jared buys goods from Winston. On 1 August 2016 Jared owed Winston $300.
REQUIRED
(a)
the account and bring down the balance on 1 September 2016. See next page.
13
Winston also buys goods from Jared and on 31 August 2016 he owed Jared $40. Winston decided
to make a contra entry on 1 September 2016 to set off the accounts in the sales and purchases
ledgers.
REQUIRED
(b) State the double entry needed to set off the accounts.
(c) Name the accounting term Winston uses for his partially finished products.
..............................................................................................................................................
14
(d) Complete the following table, indicating with a tick ( ) where each item would appear in
12
and maintains a full set of accounting records.
REQUIRED
(a) Name the book of prime (original) entry which Amira would use to obtain the following
information when preparing her sales ledger control account.
(b) State two reasons why Amira prepares a purchases ledger control account.
1 ...........................................................................................................................................
...................................................................................................................................................
2 ...........................................................................................................................................
..............................................................................................................................................
15
Amira provided the following information for September 2016.
REQUIRED
(c) Select the relevant figures and prepare the purchases ledger control account for the month of
September. Balance the account and bring down the balances on 1 October 2016. See next page.
16
(d) Suggest one advantage of paying credit suppliers before the due date.
...................................................................................................................................................
..............................................................................................................................................
(e) Suggest one disadvantage of paying credit suppliers before the due date.
...................................................................................................................................................
..............................................................................................................................................
17
13 Which statement is true about a sales ledger control account?
14 How do discount received and sales ledger contras appear in a purchases ledger control
account?
15 Paul is a trader. He maintains a full set of accounting records. His ledger is divided into a sales
ledger, a purchases ledger and a nominal (general) ledger.
REQUIRED
(a) State one advantage of dividing the ledger into these three sections.
...................................................................................................................................................
...............................................................................................................................................
(b) Name the ledger in which each of the following accounts would appear.
18