Control Accounts – Page 3

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 – Nov 2019 – L2 – SB – Q4 – Control Accounts

The question requires differentiating between receivables and payables control accounts, highlighting the uses of control accounts, and preparing sales and purchases ledger control accounts using provided transaction data.

Question

a. The Chief Executive Officer (CEO) of Favourite Gift Shop buys and sells gift items to both individuals and organisations. The CEO has close personal relationships with her business partners and knows the amount owed to her suppliers.

In a recent meeting held between the CEO and the Auditor, the Auditor brought up the issue of the unavoidable need for the business to maintain the relevant control accounts. The CEO is seriously considering adhering to the auditor’s recommendation but needs further clarification on the issue.

Required:
i. Differentiate between receivables control account and payables control account. (2 Marks)

ii. Highlight FOUR uses of control accounts. (4 Marks)

b. The following information is extracted from the books of Favourite Gift Shop for October 1, 2019:

Transaction	Debit	Credit
Sales Ledger Balance	N7,200 (debit)	N45 (credit)
Bought Ledger Balance	N100 (debit)	N2,910 (credit)
Sales Day Book Total	N105,540
Purchases Day Book Total	N94,150
Returns Inwards	N4,710
Bank Draft Received	N13,500
Cheques Payment to Suppliers	N82,000
Cheques Returned	N3,750
Bad Debts Written Off	N3,200
Cash Sales	N180
Discount Allowed	N1,350
Discount Received	N2,835
Returns Outwards Day Book	X
Purchases Ledger Contra	N780
Petty Cash Paid to Suppliers	N100
Drafts Issued to Suppliers	N6,450
Debit Balance in Sales Ledger Transferred to Purchases Ledger	N780
Discount Withdrawn by Suppliers	N435
SMS Alerts for Cheques Received from Customers	N42,500
Discount Disallowed	N450
October 31, 2019 Sales Ledger Balance	N24,765 (debit)	N290 (credit)
October 31, 2019 Bought Ledger Balance	N114 (debit)	N4,260 (credit)

Required:
i. Prepare the sales ledger control account for the period. (7 Marks)
ii. Prepare the purchases ledger control account for the period. (7 Marks)

Answer

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Tags: Payables Control Account, Purchases Ledger, Receivables Control Account, Sales Ledger, Uses of Control Accounts
Level: Level 1

Topic: Control Accounts
Series: NOV 2019

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

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Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – Nov 2019 – L1 – SA – Q14 Control Accounts

Identify the statement that does not explain the imprest system of petty cash.

Question

The following explains the imprest system of operating petty cash, EXCEPT:

A. Weekly expenditure cannot exceed a set amount
B. The exact amount of expenditure is reimbursed at intervals to maintain a fixed float
C. The petty cashier collects revenue on behalf of the organization
D. A petty cashier receives cash, makes expenses of relatively small amounts, and maintains records for the transactions
E. Regular equal amounts of cash are transferred into petty cash at regular intervals

Answer

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Tags: Accounting Process, Imprest System, Petty Cash
Level: Level 1

Topic: Control Accounts
Series: NOV 2019

FA – May 2016 – L1 – SA – Q12 – Control Accounts

A question about the meaning of the purchases ledger item in the control account.

Question

The item “Purchases Ledger – N7,200,000” in the control account means:
A. Cash Purchases during the period
B. Credit purchases during the period
C. Receivables set off against payables
D. Cash Payable
E. Cash Receivable

Answer

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Tags: Ledger, Payables, Purchases, Set-off
Level: Level 1

Topic: Control Accounts
Series: MAY 2016

FA – May 2016 – L1 – SA – Q11 – Control Accounts

A question about the meaning of the balance in the receivables control account.

Question

The balance of N1,840,000 in the receivables control account represents:
A. Amount necessary to balance the account
B. Amount due to the customers
C. Amount due from the customers
D. Amount due from cash sales
E. Amount due from sales

Answer

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Tags: Balance, Control Accounts, Receivables
Level: Level 1

Topic: Control Accounts
Series: MAY 2016

FA – May 2024 – L1 – SB – Q3b – Control Accounts

Makes necessary adjustments in the receivables control account and reconciles the adjusted balance with the ledger accounts.

Question

b. Baba Enterprise’s receivables ledger control account on June 30, 2023, has a debit balance of ₦4,750,000, which did not agree with the net total of the list of receivables ledger balances as at that date. The following errors were discovered:

Sales returns of ₦175,000 by Uda have been recorded in Uda’s account in the receivables ledger but the transaction was not posted to the general ledger.
Credit sales of ₦200,000 to Chioma were not recorded in the control account but were recorded in the personal ledger of Chioma.
An item of goods sold to Abe, ₦312,500, had been entered once in the sales day book but posted to his account twice.
Baba Enterprise had expected Idowu to take advantage of a settlement discount of ₦32,750. Idowu did not settle the account on time to qualify for the discount. This has been recorded correctly in Idowu’s account but not entered in the general ledger.
A bad debt amounting to ₦500,000 had been written off in the receivables ledger but had not been posted to the bad debts expense account or entered in the control account.
Debit balances in the receivables ledger, amounting to ₦128,750, had been omitted from the list of balances.
Payment of ₦120,000 received from Kwali was posted to the cash book but not recorded in the control account.
Credit sales was overstated by ₦250,000 in the control account.
No entry had been made in the control account in respect of the transfer of a debit of ₦89,000 from Taju’s account in the receivables ledger to his account in the payables ledger.

Required:

i. Make the necessary adjustments in the receivables control account and bring down the adjusted balance. (10 Marks)

ii. Reconcile the adjusted balance with the total balance in the individual receivables ledger account. (4 Marks)

Answer

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Tags: Ledger Balances, Receivables Control Account, Reconciliation
Level: Level 1

Topic: Control Accounts
Series: MAY 2024

FA – May 2024 – L1 – SB – Q3a – Control Accounts

Lists reasons for differences between a supplier's statement and the ledger account and explains how to identify and resolve these differences.

Question

a. List three possible reasons for differences between the supplier’s statement balance and the supplier’s account balance in the ledger and explain how these differences can be identified and resolved during the reconciliation process. (6 Marks)

Answer

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Tags: Control Accounts, Ledger Account, Reconciliation, Supplier Statement
Level: Level 1

Topic: Control Accounts
Series: MAY 2024

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

Question

The following balances were extracted from the books of Judexco Limited on December 31, 2018:

Required:
a. Prepare the receivables ledger control account. (7 Marks)
b. Prepare the purchases ledger control account. (6 Marks)
c. List FOUR uses of control accounts. (4 Marks)
d. Outline SIX accounting errors that cannot be discovered by means of a trial balance. (3 Marks)

Answer

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Tags: Accounting Errors, Control Accounts, Payables Ledger, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – Mar/July 2020 – L1 – SA – Q18 – Control Accounts

Identifying items recorded on the credit side of the trade receivables control account

Question

Which of the following is NOT recorded on the credit side of the trade receivables control account?
A. Dishonoured cheque
B. Cash received from customers
C. Cheque received from customers
D. Sales returns
E. Discount allowed

Answer

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Tags: Control Account, Credit Side, Trade receivables
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – Mar/July 2020 – L1 – SA – Q5 – Control Accounts

Correcting errors in a receivables control account

Question

Tomiwa’s individual receivables ledger balances totaling N500,000 do not agree with her receivables control account. The following errors were found:
(i) Credit note for N7,500 was not recorded in the receivables ledger
(ii) Contra entry of N20,000 was entered in the individual payables ledger account but not in the receivables and payables ledger control accounts

What should be the total of the balance on her receivable ledger control account after correcting the above errors?
A. N527,500
B. N500,000
C. N492,500
D. N482,500
E. N472,500

Answer

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Tags: Adjustments, Control Account, Errors, Receivables
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

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 – Nov 2019 – L2 – SB – Q4 – Control Accounts

The question requires differentiating between receivables and payables control accounts, highlighting the uses of control accounts, and preparing sales and purchases ledger control accounts using provided transaction data.

You're reporting an error for "FA – Nov 2019 – L2 – SB – Q4 – Control Accounts"

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

You're reporting an error for "FA – May 2017 – L1 – SA – Q11 – Control Accounts"

FA – Nov 2019 – L1 – SA – Q14 Control Accounts

Identify the statement that does not explain the imprest system of petty cash.

You're reporting an error for "FA – Nov 2019 – L1 – SA – Q14 Control Accounts"

FA – May 2016 – L1 – SA – Q12 – Control Accounts

A question about the meaning of the purchases ledger item in the control account.

You're reporting an error for "FA – May 2016 – L1 – SA – Q12 – Control Accounts"

FA – May 2016 – L1 – SA – Q11 – Control Accounts

A question about the meaning of the balance in the receivables control account.

You're reporting an error for "FA – May 2016 – L1 – SA – Q11 – Control Accounts"

FA – May 2024 – L1 – SB – Q3b – Control Accounts

Makes necessary adjustments in the receivables control account and reconciles the adjusted balance with the ledger accounts.

You're reporting an error for "FA – May 2024 – L1 – SB – Q3b – Control Accounts"

FA – May 2024 – L1 – SB – Q3a – Control Accounts

Lists reasons for differences between a supplier's statement and the ledger account and explains how to identify and resolve these differences.

You're reporting an error for "FA – May 2024 – L1 – SB – Q3a – Control Accounts"

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts"

FA – Mar/July 2020 – L1 – SA – Q18 – Control Accounts

Identifying items recorded on the credit side of the trade receivables control account

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q18 – Control Accounts"

FA – Mar/July 2020 – L1 – SA – Q5 – Control Accounts

Correcting errors in a receivables control account

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q5 – Control Accounts"

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