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Igcse Accounting Essential 2e Answers 24
Igcse Accounting Essential 2e Answers 24
Igcse Accounting Essential 2e Answers 24
CONTROL ACCOUNTS
Question 1
Question 2
Question 3
$ Source of information
Bad debts written off 80 General journal
Credit sales 63 490 Sales journal
Credit purchases 42 110 Purchases journal
Discounts allowed 370 Cash book
Discounts received 260 Cash book
Payments to trade payables 39 650 Cash book
Purchases returns 580 Purchases returns journal
Receipts from trade receivables 59 120 Cash book
Sales returns 240 Sales returns journal
Question 5
The control account debit balance and sales ledger debit balance total agree, so there
appears to be no error in the accounts.
Question 6
The control account credit balance and the purchases ledger credit balance total do not
agree, so there must be errors in the purchases ledger, control account, or both.
EXAM-STYLE QUESTIONS
Question 12
The control accounts would help to identify errors made in the sales ledger and/or the
purchases ledger.
The control account balances would provide figures for total trade receivables and
total trade payables for inclusion in the financial statements. These figures could be
obtained more quickly than by balancing and totalling all the balances in sales ledger
and purchases ledger.
Control accounts could help to reduce fraud because there would be regular
‘independent’ checks on the sales and purchases ledgers.
(b)
The sales ledger control account balance and the sales ledger account total balances may
not have agreed because:
an error or errors had been made in the accounts of trade receivables in the sales
ledger
an error or errors had been made in compiling the sales ledger control account
a combination of both of these.