Control accounts questions

Exercise 1
Following balances were extracted from sales ledger of Navara Company limited for the month ended
31 March 2014
Rs.
Anoma company 4260 Dr
S. Sakalasinghe 2250 Dr
Albert Silva 1020 Dr
M. Saleem 1800 Dr
P. Dayarathne 1200 Dr

Credit sales for March month were as follows

March 01 S. Sakalasinghe 1050
Anoma company 2250
07 S. Sakalasinghe 2100
09 M. Saleem 3000
17 M. Saleem 2250
19 P. Dayarathne 5100

Sales return for March month

March 09 Anoma Company 450
15 S. Sakalasinghe 630

Cash received from debtors and discounts allowed during the period is as follows
Anoma company 4200 cash discount 90
S. Sakalasinghe 2205 cash discount 45
M. Saleem 1746 cash discount 54
P. Dayarathne 1164 cash discount 36
Albert Silva 720
Rs. 720 received from Albert Silva and remaining balance were written off as bad debts
As on 31st March 2014 Rs. 450 balance were transferred to sales ledger account from S. Sakalasinghe
account due to providing goods

You are required to prepare the sales ledger control account

Exercise 2
Following information is extracted from Kapilasenevirathna business for 2014 March month

Purchase journal
2014
March 03 Malan Siva 1920
07 S. Dayas 1080
18 C. Manurathna 1640
25 S. Navarathna 1480

Purchase return journal

2014
March 12 Malan Silva 200
26 C. Manurathna 320

Cash book
2014 D/R Cash
March 09 C. Manurathna 120 2760
18 S. Navarathna 20 7880
24 S. Dayas 124 1566
28 Malan Silva 72 1288
General Journal
2014
March 20 Malan Silva Creditors 720 Dr
Malan Silva Debtors 720 Cr
(transferred from sales ledger to purchase ledger)

Following balances were extracted from purchase ledger as on 1 st March 2014

Malan Silva 1440
S. Dayas 560
C. Manurathna 2880
S. Navarathna 1240

You are required to prepare

1. Purchase ledger control account for March 2014
2. The ledger of S. Dayas in personal ledger

Exercise 3

Beginning balance of debtors in a business for 1st of Match 2013 was Rs. 50500. Balance in the
doubtful debt account on same date represented Rs. 2795. Following transactions were
occurred during the period
Rs.
Sales during the year 510000
Cash received from debtors 492500
Bad debts written off 1800
Discounts allowed 12400
Sales return 10900
Following adjustments are to be made in the books
1. 5% provision for doubtful debt should be made based on the closing date value
2. Rs. 4000 which is to be received from Sunil Perera is included in the debtor balance, and
it should be paid RS. 6000 to the same person since he is a creditor
3. A cheque received from Sarath Silva has been dishonored by the bank Rs. 3500
4. Goods sent on sales or return basis value Rs. 3000 is included in the debtor account. But
these goods have been returned by the debtors on 31st March 2014

You are required to prepare

1. Debtor control account
2. Provision for doubtful debt account

Exercise 4
The total balance of debtor ledger extracted from Perera business book is Rs. 35700. This was
not equal to the control account balance. Following errors and omissions were identified. After
rectifying those, balances should be equal.

1. The missed debit balance of debtor balance list Rs. 80 and credit balance is Rs. 60
2. A debit balance of debtors which has been recorded as credit balance Rs. 350
3. Rs. 1000 is understated in totaling the sale journal
4. Rs. 500 written off Sunil have been recorded only in the control account and bad debt
account, no other entries are placed related to this
5. Sales return from Piyal who is a debtor Rs. 450 has been recorded in the relevant
journal. But not recorded in the Piyal’s account
6. A cheque received from Kamal has been dishonored by bank. Due to this a discount
which given were cancelled and the value of discount was Rs. 250 this has been
recorded in two relevant ledgers except discount column of cash book
7. A fine charged from a debtor Rs. 150 has been correctly included in his personal
account, but not posted to the control account
8. The sales return journal is understated by Rs. 100
You are required
1. To prepare a debtor reconciliation statement to reconcile thee balances between debtor
balance list and debtor control account balance
2. Adjustments in the control account

Exercise 5

As at 31.12.2013 the totals of debtors’ balance list of XYZ traders was Rs. 20000. This was not
agreed with the balance of control account on same date. Following reasons were revealed in
the subsequent investigation

1. Cash received from a debtor Rs. 2000 has correctly recorded in the personal account
and not recorded in the control account
2. Sales day-book total is understated by 1000
3. Bad debt written off during the year Rs. 2000 has been recorded in the control account
as Rs. 200
4. Rs. 1000 of sales invoice is not recorded in the books
5. When recording Rs. 3500 of sales returns in the personal ledgers of debtors it is not
recorded Rs. 300 worth of sales return amount in the debtor’s ledger
6. A debtor balance of Rs. 500 (debit balance) which held in the debtor ledger in closing
day has not been taken to the debtor balance list/ statement
7. A contra entry made by crediting the debtor’s ledger and debiting the creditors ledger
Rs. 250 has not recorded in the control account
8. An invoice of Rs. 800 which stated in the sales journal has not posted to the personal
ledger
You are required to prepare
1. A statement which shows the balance of debtors after rectifying the errors in the ledger
2. Adjusted debtor control account which shows the balance before rectifying the errors
Exercise 6
The following information is relating to Salika’s business for the month of March 2003
The debtor balance as of 1st March 2003
Lakmal 5000
Sujith 6000
Ravi 12000

Credit sales details

Name Amount Remarks
Lakmal 25000
Sujith 5200
Ravi 6000 All goods returned on 25th March
Kumar 7500

The receipts of the cash book

Date description Discount Amount Cash sales Debtors other
March
01 Balance 2500
02 Lakmal 5000 5000
05 Sales 8000 8000
12 Rent 200 200
15 Sujith 200 5800 5800
20 Sales 3200 3200
200 24700 11200 10800 200

Required
1. Debtors control account
2. Debtors personal accounts in the debtor’s ledger
Exercise 7
The following information of e company for the year ended 31.03.2011 has been given

Amal Bimal Chamila Total

Balance as at 01.01.2010 100 250 150 500
Sales 800 1200 850 2850
Sales return (50) (50)
Discount allowed (9) (9)
Cash collected (741) (1200) (550) (2491)
Balance as at 31.03.2011 150 200 450 800

Summary of creditors ledger (Rs. 000)

Prasanna Jayantha Total
Balance as at 1.4.2010 80 170 250
Purchases 1300 930 2230
Purchases return (30) (30)
Discounts received (10) (10)
Cash paid (1200) (850) (2050)
Balance as at 31.3.2011 140 (850) (2050)

 Opening balance of control accounts agreed with the totals of opening balances of
debtors and creditors ledger accounts
 Profit for the year as per draft financial statements was Rs.1300000
 Draft financial statements have been prepared without considering the information
given below
1. Both debtors control account and sales account have been posted with an
excess amount of Rs.600000
2. No journal entries have been passed with regard to sales returns, purchase
returns, discount received and allowed
3. A specific provision of 10% for doubtful debts should be made on the balance of
Chamila as at 31.03.2011
Required
1. Balance od debtors control account and creditor control account before making
adjustments
2. Adjustments in debtors control account
3. Carrying amount of debtors as at 31.03.2011
4. A statement to correct the profit for the year

Exercise 8
Creditors ledger balance of Aloka Ltd are given below
01.01.2008 31.01.2008
Nalaka Ltd 10000 5000
Kumara & Company - 10000
Tharindu Limited - 37000
Amal Enterprises 50000 70000

Total of creditors’ balances as at 01.01.2008 was agreed with the creditor control account
balance. However, they were different from each other as at 31.01.2008. subsequent
examination confirmed that creditors control account has been correctly prepared. However,
some transactions have not been posted to the creditor’s ledger

Details of the credit purchases including returns and payments for the month of January are
given below
Supplier Purchase Purchase return Detail of the payment
Nalaka ltd 50000 5000 Opening balance and net purchase
of the month
Kumara & company 100000 Total balance due after deducting a
10% cash discount
Tharindu tld 80000 2000 50% of net purchase of the month
Amal enterprise 78000 8000 Opening balance

Required
1. The creditors control account
2. Creditor balance reconciliation statement