CHAPTER 3.10–3.

13

CONTROL ACCOUNTS
Question 1

Dr Sales Ledger Control account Cr

June 1 Opening balance 9 000 June 30 Receipts 31 000
30 Credit sales 37 000 30 Discounts allowed 3 000
30 Sales returns 5 000
30 Bad debts 1 000
30 Closing balance c/d 6 000
46 000 46 000
July 1 Balance b/d 6 000

Question 2

Dr Purchases Ledger Control account Cr

Mar 31 Payments 161 310 Mar 1 Opening balance 53 480
31 Discounts received 4 370 31 Credit purchases 185 920
31 Purchases returns 11 990
31 Balance c/d 61 730
239 400 239 400
Apr 1 Balance b/d 61 370

Question 3

Dr Sales Ledger Control account Cr

May 1 Opening balance 5 220 May 31 Sales returns 980
31 Credit sales 18 460 31 Receipts 16 440
31 Discounts allowed 730
31 Bad debts 400
31 Closing balance c/d 5 130
23 680 23 680
June 1 Balance b/d 5 130

Dr Purchases Ledger Control account Cr

May 31 Purchases returns 1 110 May 1 Opening balance 3 640
31 Payments 10 950 31 Credit purchases 11 270
31 Discounts received 520
31 Balance c/d 2 330
14 910 14 910
June 1 Balance b/d 2 330
Question 4

$ Source of information

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

Dr Sales Ledger Control account Cr

Mar 1 Opening balance 10 370 Mar 31 Bad debts 80
31 Credit sales 63 490 31 Discounts allowed 370
31 Receipts 59 120
31 Sales returns 240
31 Closing balance c/d 14 050
73 860 73 860
Apr 1 Balance b/d 14 050

Dr Purchases Ledger Control account Cr

Mar 31 Discounts received 260 Mar 1 Opening balance 8 830
31 Payments 39 650 31 Credit purchases 42 110
31 Purchases returns 580
31 Balance c/d 10 450
50 940 50 940
Apr 1 Balance b/d 10 450

Question 5

Dr Sales Ledger Control account Cr

Jan 1 Opening balance 7 400 Jan 31 Opening balance 230
31 Credit sales 27 480 31 Sales returns 620
31 Refunds 110 31 Receipts 21 930
31 Interest 70 31 Discounts allowed 330
31 Dishonoured cheques 190 31 Irrecoverable debts 80
31 Closing balance c/d 390 31 Contras 490
31 Closing balance c/d 11 960
35 640 35 640
Feb 1 Balance b/d 11 960 Feb 1 Balance b/d 390

The control account debit balance and sales ledger debit balance total agree, so there
appears to be no error in the accounts.
Question 6

Dr Purchases Ledger Control account Cr

Oct 1 Opening balance 830 Oct 1 Opening balance 31 620
31 Payments 75 060 31 Purchases 82 880
31 Discounts received 2 240 31 Refunds 90
31 Purchases returns 5 370 31 Interest charges 250
31 Contras 270 31 Balance c/d 990
31 Balance c/d 32 060
115 830 115 830
Nov 1 Balance b/d 990 Nov 1 Balance b/d 32 060

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

Q Ans Q Ans Q Ans Q Ans Q Ans

7 B 8 B 9 B 10 C 11 C

Question 12

(a) Answer could include:

 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)

Dr Purchases Ledger Control account Cr

Apr 1 Opening balance 640 Apr 1 Opening balance 22 470
30 Discounts received 760 30 Credit purchases 48 410
30 Payments 45 700 30 Closing balance c/d 210
30 Purchases returns 930
30 Closing balance c/d 23 060
71 090 71 090
May 1 Balance b/d 210 May 1 Balance b/d 23 060

Dr Sales Ledger Control account Cr

Apr 1 Opening balance 14 790 Apr 1 Opening balance 330
30 Credit sales 51 830 30 Sales returns 1 240
30 Closing balance c/d 480 30 Receipts 52 600
30 Discounts allowed 440
Closing balance c/d 12 490
67 100 67 100
May 1 Balance b/d 12 490 May 1 Balance b/d 480
Question 13
(a)

Dr Purchases Ledger Control account Cr

Jan 1 Opening balance 440 Jan 1 Opening balance 29 780
31 Discounts received 2 080 31 Credit purchases 73 550
31 Payments 64 390 31 Interest 140
31 Purchases returns 4 380 31 Closing balance c/d 820
31 Closing balance c/d 33 000
104 290 104 290
Feb 1 Balance b/d 820 Feb 1 Balance b/d 33 000

Dr Sales Ledger Control account Cr

Jan 1 Opening balance 33 640 Jan 1 Opening balance 730
31 Credit sales 95 460 31 Sales returns 3 110
31 Interest 80 31 Receipts 85 370
31 Refunds 280 31 Discounts allowed 1 140
31 Dishonoured cheques 730 Irrecoverable debts 970
31 Closing balance c/d 490 31 Closing balance c/d 39 360
130 130
Feb 1 Balance b/d 680 Feb
39 360 1 Balance b/d 680
490
(b) Answers could include:

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.