Control Account Exercises
1. Vijay Singh maintains a full set of accounting records and prepare control accounts at the
end of each month.
He provided the following information.
2015 $
April 1 Debit balance on sales ledger control account 475
April 30 Total for the month
Sales Journal 590
Sales Returns Journal 46
Cash Sales 614
Cheques received form credit customers 387
Cheque received from credit customers 26
(included in the above figure ) later dishonored
Cheques paid to credit suppliers 469
Discount allowed 13
Discount received 34
Bad debt written off 32
Interest charged to credit customer 8
Contra entry to purchases ledger 150
May 1 Debit balance on sales ledger control account ?
Credit balance on sales ledger control account 21
REQUIRED:
(a) Select the relevant figures and prepare Vijay Singh’s sales ledger control account for
the month ended 30 April 2015.
(b) Explain the contra entry to the purchase’s ledger
(c) Suggest why Vijay Singh charged a credit customer interest.
(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.
2. Kriti provided the following information.
2014 $
January 1 Trade receivables balances 13400 ( Dr )
120 ( Cr )
Inventory 21600
For the year ended 31 December 2014
December 31 Cash Sales 44400
Credit Sales 165600
Bad Debts written off 2800
Receipt from credit customers 155010
Discount allowed to credit customers 4560
Contra with supplier’s account 1300
Cheque refund to a credit customer 90
January 1 Trade receivables balances ? ( Dr )
200 ( Cr )
Inventory 28800
Mark up on goods sold 50%.
REQUIRED
(a) Calculate Kriti’s purchases for the year.
(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.
(c) State two reasons why Kriti maintains a sales ledger control account.
(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 any entry for a provision for
doubtful debts.
3. Esme provided the following information.
2014 $
January 1 Trade payables 7000
Trade receivables 9500
For the year ended 31 December 2014
Sales ( all credit ) 95100
Sales returns 1050
Purchases ( all credit ) 63600
Purchases returns 1950
Receipt form credit customers 92750
Payments to credit suppliers 59000
Refund to credit customer 450
Discount allowed 2100
Discount received 850
Bad debt written off 300
Additional information at 31 December 2014.
1. Esme owed $100 to a supplier who also owed $180 to Esme. It was agreed to record this
as a set off 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.
(b) State one reason why Esme maintains a sales ledger control account.
(c) State why the discount allowed was given.
4. You have been asked to prepare a total debtors account and total creditor account for
Saber store. You are able to obtain the following information from the book of the
original entry.
At 31 March 2014 $
Cash Sales 344890
Credit Sales 268187
Cash Purchases 14440
Credit Purchases 496600
Total receipts form customers 600570
Total payments to suppliers 503970
Discount allowed ( all to credit customers ) 5520
Discount received ( all from credit suppliers ) 3510
Refunds given to cash customers 5070
Balance in the sales ledger set off against balance in the purchase’s ledger 70
Bad debt written off 780
Allowance for impairment of debt 90
Bill receivables from credit customers 4140
Bill payables to credit suppliers 1480
According to the audited financial statements for the previous year debtors and creditors as at 1
April 2013 were $26555 and $43450 respectively.
5. The following figures are taken from the books of Jupiter for the month of December.
Balance at 1 December 2019:
Balance at 1 December 2019:
Total debtors control account
Debit 22300
Credit 2220
Total credits control account
Debit 1130
Credit 11890
Transactions occur during December:
Total credit purchases 342000
Total credit sales 231000
Discount allowed 8000
Discount received 4500
Cheque and cash received from debtors 221100
Cash refund to credit customers 2300
Cash from cash customers 88900
Sales returns 18000
Purchases returns 31000
Allowance received from cash suppliers 6500
Cash and cheque paid to credit suppliers 112000
Cash received from cash customers 81700
Sales ledger balance is set off against 4900
Balance at 31 December 2019
Total debtors control – credit balance 445
Total creditors control – debit balance 345
Required: Prepare Total Debtors and Total Creditors Control Accounts for the month of
December.
