Control Accounts – Page 2

FA – May 2012 – L1 – SA – Q17 – Control Accounts

Identifying an advantage not associated with control accounts.

Question

The advantages of Control Accounts do NOT include:

A. Locating errors
B. Facilitating the extraction of trial balance
C. Detecting fraud
D. Checking on the accuracy of ledger entries
E. Discouraging adherence to double entry principle

Answer

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Tags: Control Accounts, Error Detection, Trial Balance
Level: Level 1

Topic: Control Accounts
Series: MAY 2012

FA – May 2012 – L1 – SA – Q15 – Control Accounts

Identifying items not credited to the Accounts Payable Control Account.

Question

Which of the following items should NOT be on the credit side of Accounts Payable Control Account?

A. Total of purchases day book
B. Interest charged by suppliers
C. Transfer of debit balance to accounts receivable ledger
D. Transfer of credit balance from accounts receivable ledger
E. Set-offs

Answer

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Tags: Control Accounts, Ledger Entries, Payables
Level: Level 1

Topic: Control Accounts
Series: MAY 2012

FA – Nov 2011 – L1 – SA – Q20 – Control Accounts

This question asks for another name for the Debtors Control Ledger Account.

Question

Another name for Debtors Control Ledger Account is?

Answer

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Tags: Control Accounts, Sales Ledger
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q13 – Control Accounts

This question asks how credit sales can be derived when there is no sales account.

Question

In the absence of a Sales Account, credit sales can be derived from?

Answer

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Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q7 – Control Accounts

This question asks how contra entries in control accounts are corrected.

Question

By what means do you effect correction of contra entries in control accounts?

Answer

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Tags: Contra Entries, Control Accounts
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q3 – Control Accounts

This question tests knowledge on the description and function of control accounts in accounting.

Question

Which of the following describes a Control Account?
A. Conglomerate of ledger system
B. Combined ledger system
C. Self-balancing ledger system
D. Standardized ledger system
E. List of balances

Answer

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Tags: Control Accounts, Ledger System
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2020 – L1 – SA – Q17 – Control Accounts

Identifies items recorded on the credit side of a receivables ledger control account.

Question

Which of the following would be on the credit side of the receivables ledger control account?

I. Cash received
II. Irrecoverable debts
III. Discount allowed
IV. Sales

A. I, II, and III
B. I, III, and IV
C. II and IV
D. I and IV
E. I, II, III, and IV

Answer

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Tags: Control Accounts, Credit Side, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q6 – Control Accounts

Identifies a feature that does not describe a control account.

Question

Which of the following is NOT a feature of a control account?
A. It is maintained by the financial controller.
B. It is used to check arithmetical accuracy of the ledger to which it relates.
C. The ledger to which it relates is known as self-financing.
D. It helps in the detection of fraud and error.
E. The entries therein appear on the same side as they do in the individual accounts.

Answer

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Tags: Control Accounts, Fraud Detection, Ledger Accuracy
Level: Level 1

Topic: Control Accounts
Series: NOV 2020

FA – Nov 2012 – L1 – SA – Q7 – Control Accounts

Identifying a source that does not provide information for preparing control accounts.

Question

Source of information for preparing Control Accounts EXCLUDES:

A. Purchases journal
B. Cash discount
C. Sales day book
D. Cash account
E. Opening Statement of Financial Position

Answer

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Tags: Cash, Control Accounts, Prime Entry, Purchases
Level: Level 1

Topic: Control Accounts
Series: NOV 2012

FA – May 2014 – L1 – SA – Q20 – Control Accounts

This question tests knowledge of the document used by a consignee to report to a consignor in consignment transactions.

Question

What is the name of a periodic statement sent by a Consignee to a Consignor?

Answer

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Tags: Business Communication, Consignment Accounting, Financial Reporting
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

Question

The cost of direct materials, direct wages and direct expenses are the components of ………………………..

Answer

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Tags: Direct Costs, Manufacturing Costs, Prime Cost
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

FA – May 2014 – L1 – SA – Q7 – Control Accounts

Identifies a feature that is not characteristic of control accounts.

Question

Which of the following is NOT a feature of a control account?
A. It is maintained by the financial controller
B. It is used to check arithmetical accuracy of the ledger to which it relates
C. The ledger to which it relates is known as self-financing
D. It contains the total of entries in individual accounts
E. The entries therein appear on the same side as they do in the individual accounts

Answer

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Tags: Control Accounts, Financial Records, Ledger Accuracy
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

FA – Nov 2015 – L1 – SA – Q17 – Control Accounts

This question identifies which item is NOT expected on the credit side of a receivable ledger control account.

Question

Which of the following items is NOT expected to be found on the credit side of a receivable ledger control account?
A. Cash received from customers
B. Value of goods returned by customers
C. Decrease in allowance for receivables
D. Discount allowed
E. Customers’ debt written-off

Answer

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Tags: Accounting principles, Control Account, Receivables
Level: Level 1

Topic: Control Accounts
Series: NOV 2015

FA – Nov 2021 – L1 – SA – Q6 – Control Accounts

This question explores the role of control accounts in accounting.

Question

The control account is used in facilitating:
A. The location of errors in the various accounts
B. To update bank transactions
C. The payment of debts and liabilities of the firm
D. Location of petty cash book error
E. Balancing the trial balance

Answer

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Tags: Control Accounts, Error Detection, Multiple Choice
Level: Level 1

Topic: Control Accounts
Series: NOV 2021

MI – May 2022 – L1 – SA – Q6 – Control Accounts

Identifying the summary account used for recording totals of transactions.

Question

A summary account, where entries are made from the totals of transactions for a period, is called:

A. Cost ledgers
B. Control accounts
C. Costing profit or loss accounts
D. Overhead accounts
E. Interlocking accounts

Answer

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Tags: Control Accounts, Summary Accounts
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

FA – May 2022 – L1 – SB – Q4a – Control Accounts

Prepare the receivables control account and allowances for doubtful debts for Rivers Limited.

Question

Rivers Limited has trade receivables of ₦1,922,000 on April 1, 2020. At the end of its accounting year on March 31, 2021, sales on credit were ₦6,247,000, receipts from customers were ₦6,297,000, and bad debts written off were ₦172,000. In addition, Rivers Limited has a policy of providing 2% allowances on its trade receivables.

Required:
(i) Prepare the Receivables Control Account
(ii) Prepare the Allowances for Doubtful Debt

Answer

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Tags: Doubtful Debts, Receivables Control Account, Trade receivables
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

FA – May 2022 – L1 – SA – Q19 – Control Accounts

Identify the principal function of a sales ledger control account.

Question

The principal function of a sales ledger control account is to:

A. Serve as external check and provide quick information for the preparation of interim financial statements
B. Serve as internal check and provide quick information for the preparation of interim financial statements
C. Check sales fraud
D. Provide quick information for the control of salesmen’s activities
E. Provide quick information for the preparation of customer’s statements

Answer

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Tags: Control Accounts, Interim Financial Statements, Sales Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

FA – Nov 2022 – L1 – SA – Q6 – Control Accounts

Identify the use of control accounts in financial records.

Question

The control account is used in facilitating
A. The location of errors in the various accounts
B. The update of bank transactions
C. The payment of debts and liabilities of the firm
D. Location of petty cash book error
E. Balancing the trial balance

Answer

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Tags: Control Accounts, Error Detection, Trial Balance
Level: Level 1

Topic: Control Accounts
Series: NOV 2022

FA – May 2021 – L1 – SB – Q4 – Control Accounts

The question involves preparing control accounts and reconciling the balances with individual ledgers for payables and receivables.

Question

Wakanda is an African-focused company in the sales of super-tech wrist watches with corporate logos. The wrist watches are purchased and sold in bulk on credit. The accountant is currently carrying out a reconciliation of the payables and receivables ledger control account balances, which are ₦218,320,000 and ₦172,120,000, respectively, to the total of the balances on the individual accounts in the payables and receivables ledgers, which are ₦197,660,000 and ₦156,134,000 respectively for the month of March 2019.

The following has been detected:

(i) Cash received of ₦1,070,000 has been debited to the individual customer’s account in the accounts receivable ledger.

(ii) The total of discount received for the month, amounting to ₦17,150,000, has not been entered in the control account but has been entered in the individual ledger accounts.

(iii) A supplier credit balance of ₦2,050,000 has been incorrectly treated as a debit.

(iv) A cheque for ₦2,555,000 from a customer has been dishonoured. The correct double entry has been posted, but the individual accounts have not been updated.

(v) A petty cash payment to a supplier amounting to ₦630,000 has been correctly treated in the control account, but no entry has been made in the supplier’s individual ledger account.

(vi) A payment of ₦322,000 from a customer has been incorrectly entered in the accounts receivable ledger as ₦233,000.

(vii) The purchases daybook total for March has been undercast (understated) by ₦20,000,000.

(viii) Total credit sales of ₦4,500,000 to an accountancy firm, TQ and Associates, have been posted correctly to the ledger account but not recorded in the control account.

(ix) Contras (set-offs) with the receivables ledger, amounting in total to ₦20,040,000, have been correctly treated in the individual ledger accounts but no entry has been made in the control account.

(x) Discounts allowed totalling ₦120,000 have not been entered in the control account.

Required:

a) Prepare the Trade Payable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Payable Ledger. (10 Marks)

b) Prepare the Trade Receivable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Receivable Ledger. (10 Marks)

Answer

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Tags: Control Accounts, Financial Statements, Payables, Receivables, Reconciliation
Level: Level 1

Topic: Control Accounts
Series: MAY 2021

FA – Nov 2014 – L1 – SA – Q7 – Control Accounts

Identifying which item would not be posted to the credit of the payables control account.

Question

Which of the following would NOT be posted to the credit of payables control account?

A. Total credit purchases
B. Transfer of credit balances from receivables’ ledger
C. Transfer of debit balances to receivables’ ledger
D. Set-off contra
E. Interest charged by suppliers

Answer

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Tags: Credit Postings, Financial Accounting, Ledger Accounts, Payables Control Account
Level: Level 1

Topic: Control Accounts
Series: NOV 2014

Topic: Control Accounts

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FA – May 2012 – L1 – SA – Q17 – Control Accounts

Identifying an advantage not associated with control accounts.

You're reporting an error for "FA – May 2012 – L1 – SA – Q17 – Control Accounts"

FA – May 2012 – L1 – SA – Q15 – Control Accounts

Identifying items not credited to the Accounts Payable Control Account.

You're reporting an error for "FA – May 2012 – L1 – SA – Q15 – Control Accounts"

FA – Nov 2011 – L1 – SA – Q20 – Control Accounts

This question asks for another name for the Debtors Control Ledger Account.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q20 – Control Accounts"

FA – Nov 2011 – L1 – SA – Q13 – Control Accounts

This question asks how credit sales can be derived when there is no sales account.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q13 – Control Accounts"

FA – Nov 2011 – L1 – SA – Q7 – Control Accounts

This question asks how contra entries in control accounts are corrected.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q7 – Control Accounts"

FA – Nov 2011 – L1 – SA – Q3 – Control Accounts

This question tests knowledge on the description and function of control accounts in accounting.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q3 – Control Accounts"

FA – Nov 2020 – L1 – SA – Q17 – Control Accounts

Identifies items recorded on the credit side of a receivables ledger control account.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q17 – Control Accounts"

FA – Nov 2020 – L1 – SA – Q6 – Control Accounts

Identifies a feature that does not describe a control account.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q6 – Control Accounts"

FA – Nov 2012 – L1 – SA – Q7 – Control Accounts

Identifying a source that does not provide information for preparing control accounts.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q7 – Control Accounts"

FA – May 2014 – L1 – SA – Q20 – Control Accounts

This question tests knowledge of the document used by a consignee to report to a consignor in consignment transactions.

You're reporting an error for "FA – May 2014 – L1 – SA – Q20 – Control Accounts"

FA – May 2014 – L1 – SA – Q13 – Control Accounts

This question tests knowledge of the components that make up prime cost in manufacturing.

You're reporting an error for "FA – May 2014 – L1 – SA – Q13 – Control Accounts"

FA – May 2014 – L1 – SA – Q7 – Control Accounts

Identifies a feature that is not characteristic of control accounts.

You're reporting an error for "FA – May 2014 – L1 – SA – Q7 – Control Accounts"

FA – Nov 2015 – L1 – SA – Q17 – Control Accounts

This question identifies which item is NOT expected on the credit side of a receivable ledger control account.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q17 – Control Accounts"

FA – Nov 2021 – L1 – SA – Q6 – Control Accounts

This question explores the role of control accounts in accounting.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q6 – Control Accounts"

MI – May 2022 – L1 – SA – Q6 – Control Accounts

Identifying the summary account used for recording totals of transactions.

You're reporting an error for "MI – May 2022 – L1 – SA – Q6 – Control Accounts"

FA – May 2022 – L1 – SB – Q4a – Control Accounts

Prepare the receivables control account and allowances for doubtful debts for Rivers Limited.

You're reporting an error for "FA – May 2022 – L1 – SB – Q4a – Control Accounts"

FA – May 2022 – L1 – SA – Q19 – Control Accounts

Identify the principal function of a sales ledger control account.

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FA – Nov 2022 – L1 – SA – Q6 – Control Accounts

Identify the use of control accounts in financial records.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q6 – Control Accounts"

FA – May 2021 – L1 – SB – Q4 – Control Accounts

The question involves preparing control accounts and reconciling the balances with individual ledgers for payables and receivables.

You're reporting an error for "FA – May 2021 – L1 – SB – Q4 – Control Accounts"

FA – Nov 2014 – L1 – SA – Q7 – Control Accounts

Identifying which item would not be posted to the credit of the payables control account.

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