INTRODUCTION TO ACCOUNTING

CONTROL ACCOUNTS REVIEW QUESTIONS

QUESTION ONE
Using the following information, construct both a sales ledger and purchase ledger control
account for the month end of January 2021 and so calculate the creditor and debtor final
position.
TZS
Debtors at 1 January 27,971,000
Creditors at 1 January 15,725,000
Credit sales 42,500,000
Returns from debtors 800,000
Returns to suppliers 650,000
Payment received from debtors 35,675,000
Bad debts written off 450,000
Payment to creditors 19,750,000
Credit purchases for month 22,750,000
Discounts allowed 400,000
Discounts received 380,000

QUESTION TWO

Sopenyope proves the accuracy of its sales and purchase ledgers by preparing monthly
control accounts. At 1 May 2022 the following balances existed in the company's
accounting records, and the control accounts agreed:

Debit Credit
TZS TZS
Sales ledger control account 188,360,000 2,140,000
Purchase ledger control account 120,000 89,410,000

The following are the totals of transactions which took place during May 2022, as
extracted from the company's records.

TZS
Credit sales 101,260,000.0
Credit purchases 68,420,000.0
Returns inwards 9,160,000.0
Returns outwards 4,280,000.0
Cash received from customers 91,270,000.0
Cash paid to suppliers 71,840,000.0
Cash discounts allowed 1,430,000.0
Cash discounts received 880,000.0
Irrecoverable debts written off 460,000.0
Contra settlements 480,000.0
At 31 May 2022 the balances on the customers and supplier personal accounts were extracted
and totalled as follows:

Debit balances Credit balances

TZS TZS
Sales ledger To be ascertained 2,680,000
Purchase ledger 90,000 To be ascertained

REQUIRED
Prepare sales and purchases ledger control accounts.

QUESTION THREE
Consider the following balances
Sales ledger Purchases ledger

Balances at 1st May 2021 TZS 89,300,000 TZS75,210,000

Next enter the transaction from the list for May 2021 in relevant control account
TZS
Credit sales 101,260,000.0
Credit purchases 68,420,000.0
Returns inwards 9,160,000.0
Returns outwards 4,280,000.0
Cash received from customers 91,270,000.0
Cash paid to suppliers 71,840,000.0
Cash discounts allowed 1,430,000.0
Cash discounts received 880,000.0
Irrecoverable debts written off 460,000.0
Contra settlements 480,000.0

QUESTION FOUR

Uhobhokile is a wholesaler. He prepares control accounts at the end of each month. The
following information relates to the month ended 30 April 2021.

TZS
Sales ledger control account balance 1 April 2021 64,350,000
Cheques received from credit customers 136,800,000
Discount allowed 5,250,000
Bad debts written off 7,900,000
Cash sales 10,750,000
Credit sales 153,400,000
Returns inwards 8,100,000

REQUIRED
Prepare the sales ledger control account for the month ended 30 April 2021.
QUESTION FIVE

On 1 April 2020, Yebweyebwe sales ledger control account showed the following
balances: TZS20,450,000 debit and TZS. 600,000 credit.

During April the following transactions were recorded:

TZS
Credit sales 50,500,000
Cash sales 10,000,000
Returns from credit customers 700,000
Receipts from credit customers 48,600,000
Refunds to credit customers 750,000
Discount allowed 1,200,000
Bad debt written off 800,000

On 1 May 2020, Yebweyebwe’s sales ledger control account showed a credit

balance of TZS180,000. The debit balance is to be determined.

REQUIRED

Prepare the sales ledger control account for the month of April 2020. Balance
the account and bring down the balances.

QUESTION SIX

The following information is available from the books of Kijuna for August 2022.

TZS
Trade receivables at 1 August 2022 27,520,000
Credit sales 32,400,000
Cash sales 19,970,000
Sales returns from credit customers 1,700,000
Cheques received from credit customers 40,150,000
Discount allowed 780,000
Bad debts written off 2,900,000
Interest charged on overdue accounts 600,000

REQUIRED
Prepare the sales ledger control account for August. Balance the account and bring down the
balance on 1 September 2022

QUESTION SEVEN
Tsang is in business buying and selling goods on credit. The following information is
available for the month of March 2023.
TZS
Revenue (sales) 65,000,000,000
Inventory (stock) 1 March 3,400,000,000
Trade payables (creditors) 1 March 1,700,000,000
Payments to suppliers 47,000,000,000
Discount received 300,000,000
Inventory (stock) 31 March 2,900,000,000
Ordinary goods purchased 47,900,000,000
Wages & expenses 2,500,000,000

REQUIRED
Prepare the purchase ledger control account showing the balance of trade payables (creditors)
at 31 March 2023.

QUESTION EIGHT
Mtoto Mary buys and sells on credit. She supplied the following information for the month
ended 31 May 2021.
2021 TZS
May 1 Trade receivables 5,687,000,000
31 Credit sales 72,641,000,000
Receipts from credit customers 64,500,000,000
Credit notes issued to customers 8,242,000,000
Cash discounts allowed 1,894,000,000
Bad debts 800,000,000
Contra entry 300,000,000
The sales journal had been under-cast by TZS. 86,000,000. A cheque received and banked on
8 May from John Bakery for TZS.2,300,000,000 had been returned by the bank because of
insufficient funds.

REQUIRED
Prepare the sales ledger control account for the month ended 31 May 2021. Balance the
account at that date and bring the balance down on 1 June 2021.
QUESTION NINE

The following information was obtained from the books of Sambwiya Mbwile.

TZS in ‘000,000’
1 April 2022 Sales ledger’s balance 7 190
Purchases ledger’s balance 4 120

30 April 2022 Credit sales for month 46 300

Credit purchases for month 29 900
Cash sales for month 14 360
Cash purchases for month 9 750
Sales returns for month 1 070
Purchase returns for month 940
Cheques received from trade receivables 38 900

Cheques paid to trade payables 28 100

Discounts allowed 1 060
Discounts received 760
Balance in sales ledger set off against balance in purchases
Ledger 90
Interest charged to customers on overdue accounts 20
Interest charged by supplier on overdue account 10

REQUIRED
(a) Select the appropriate items and prepare the purchases ledger control account for the month
of April.
(b) Select the appropriate items and prepare the sales ledger control account for the month
of April.

QUESTION TEN

The following information was obtained from the books of John Cooes.
TZS in thousands
1 February 2023 Trade receivables balance 14 900 Dr
Trade payables balance 17 160 Cr
28 February 2023 Cheques received from trade receivables 45 800
Cheque from trade receivable later
Dishonoured 200
Cheques paid to trade payables 32 500
Discount allowed 2 700
Discount received 910
Purchases returns 3 800
Bad debts 1 800
Cash sales 10 500
Credit Sales 64 500
Credit Purchases 48 800
Set off 650
1 March 2023 Trade receivables balance 600 Cr
 Trade payables balance 450 Dr

REQUIRED
Prepare the purchases ledger control account and sales ledger control account in
the month of February 2023.

QUESTION ELEVEN
The total of the debtor balances was TZS.5,692,348. Sales ledger control account balance was
TZS.8,115,740
Upon investigation you discover the following errors in the subsidiary ledger:
(a) A debit balance of TZS.89,577 was listed as TZS.98,577.
(b) An invoice to a customer for TZS.1,275,050 was entered on the credit side of the
customer’s account.
(c) A credit note to a customer for TZS.100,000 was not posted from the sales returns day
book.
(d) A credit balance of TZS.8,854 was listed as though it were a debit balance.
Required:
Reconcile the total of the list of debtor balances to the balance on the sales ledger

QUESTION TWELVE
The Sales Ledger Control Account of PATA CHOCHOTE Ltd for the year ended 31 st December
2021 has been prepared from the following information:

TZS.
Debit balance b/d 1st January 2021
128,540
Credit balance b/d 1st January 2021
2,800
Total for the year 1st January 2021 to 31st December 2021
Credit Sales
1,144,200
Cheques received from customers
1,046,200
Cash received from customers
7,100
Sales returns from customers
12,000
Discounts allowed
2,480
Dishonoured cheques
5,000
Contras purchases ledger
10,640
Irrecoverable debts
6,500
The Sales Ledger Control Account balance, which is part of the double entry system, failed to agree
with the total receivables of TZS.189,380 as shown by the Schedule of Receivables. The following
errors were subsequently discovered:
 (i) A customer had returned goods to PC Ltd at the selling price of TZS. 2,400. The goods
had been bought on credit. No entries had been made to record the return of the goods
in the accounts of Pata Chochote Ltd.
(ii) The discounts allowed column in the cash book had been overcast by TZS. 1,080.
(iii) No contra entry had been made in the receivables account in the sales ledger in respect
of purchases by PC Ltd of goods at a list price of TZS.2,000. Pata Chochote Ltd
received a trade discount of 10% on these goods. This transaction had been correctly
dealt with in the Sales Ledger Control Account.
(iv) A credit sale of TZS. 3,520 to Jaribu Tena Ltd was correctly recorded in the Sales ledger
Control Account, but no other entry had been made.
(v) A cheque received from a customer for TZS. 6,900, correctly processed through the
books, had subsequently been dishonoured. No entries have yet been made to record
this dishonoured cheque.
(vi) Dingi Tatizo Ltd, a customer, has recently been declared bankrupt and the debt of TZS.
3,500 is to be written off, but no entries have yet been made.

Required:
(a) Prepare a revised Sales Ledger Control Account for the year ended 31 December 2021.
(b) Prepare a statement showing the correct total of the Schedule of Receivables for the year
ended 31 December, 2021.
(c) Discuss TWO advantages to PC Ltd of using control accounts.

QUESTION THIRTEEN
The following information has been taken from the books of Bob Charles for the financial year
ended 30 June 2021.
TZS.
Sales ledger balances at 1 July 2021 62,540,000
Cash received from debtors 212,390,000
Discount allowed 3,470,000
Return inwards 4,820,000
Cash sales 58,330,000
Bad debts written off 1,960,000
Credit sales for the year 249,490,000
Debit balances transferred to purchase ledger accounts 3,410,000

The total of Bob Charles’s sales ledger balances amounts to TZS.80,080,000 which does
not agree with the closing balance in the sales ledger control account. The following errors
have been discovered.
(a) A debtor balance of TZS.930,000 was omitted from the list of debtors.
(b) Return inwards formal was under cast by TZS.870,000.
(c) Azizi Ki had returned goods worth TZS.540,000 but this sum was recorded as
TZS.450,000 in his account.
(d) Discount allowed TZS.270,000 had been posted to the wrong side of debtors account.
(e) A debtor was charged with TZS.80,000 interest but it was overlooked by the
accountant.
(f) Sales daybook had been over cast by TZS.1,360,000.
(g) Bad debts of TZS.190,000 is entered in the control account but is not posted to the
customer’s account.
 (h) Discount allowed of TZS.350,000 had been entered in the cash book but is not entered
in the customer’s account.
(i) Return inwards TZS.440,000 from Bakari Nondo had not been recorded in the books.
(j) Joseph Guede was both a customer and a supplier. He had a balance of TZS.270,000
in the purchase ledger and TZS.190,000 in the sales ledger. The contra entry was
made in Joseph Guede’s account but no entry was made in the control account.
(k) A sales invoice of TZS.1,490,000 was not entered in the books.
(l) A credit sale of TZS.1,860,000 to Kwasi Yaoyao was entered on the credit side of his
account.
Required:
(i) From the original list of balances, draw up the sales ledger control account for the year
ended 30 June 2021.
(ii) Show the amendments to be made to the control account.
(iii) Draw up a statement amending the total of the sales ledger balance to agree with
the new control account balance.

QUESTION FOURTEEN

On 30 June 2020 Kennedy Musonda listed the balances contained in his sales ledger. These balances
totalled TZS.18,040,000 but on the same date the balance of the sales ledger control account was
TZS.18,910,000. After investigation the following errors were found.
(a) A debtor balance of TZS.490,000 had been counted in total credit sales but had not been
posted to the customer’s account.
(b) Discount allowed of TZS.60,000 had been entered in the cash book but it is not entered
in the customer’s account.
(c) Return inward journal was over cast by TZS.120,000.
(d) Returns of TZS.170,000 from Sure Boy had not been recorded in the books.
(e) Khalid Aucho was both a customer and a supplier. His purchases ledger balance of
TZS.260,000 has been set-off against his sales ledger balance in the control account but
nothing had been recorded in the customer’s account.
(f) Sales day book had been over cast by TZS.460,000.
(g) A debtor account was charged with TZS.20,000 interest but it was not recorded in the
control account.
(h) Pacome returned goods worth TZS.280,000 but this sum was recorded as TZS.820,000 in his
account.
(i) A debt of TZS.110,000 had proved bad but no entry had been passed in the books.
(j) Discount allowed of TZS.80,000 had been posted to the debit side of Lomalisa Mutambala’s
account.
REQUIRED
1. Write up the sale ledger control account.
2. Prepare a statement showing the reconciliation of the original total of the sales ledger
balances with the amended sales ledger control account balance.
QUESTION FIFTEEN
Esme maintains a full set of accounting records and prepares control accounts at the end of the
year.Esme provided the following information.
At 1 January 2023: TZS
Trade payables 7,000,000
Trade receivables 9,500,000

Total for the year ended 2023

Sales (all credit) 95,100,000
Sales returns 1,050,000
Purchases (all credit) 63,600,000
Receipts from credit customers 92,750,000
Payment to credit suppliers 59,000,000
Refund to credit customer 450,000
Discount allowed 2,100,000
Discount received 850,000
Bad debts written off 300,000

Additional information at 31 December 2014

1. Esme owed TZS 100,000 to a supplier who also owed TZS 180,000 to Esme. It was
agreed to record this as a set off in the control accounts.
2. Esme owed TZS 50,000 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.

QUESTION SIXTEEN
The sales journal for March 2023 was destroyed, but Waheed was able to provide the following
Information.
At 1 March, 2023 TZS
Debit balance in sales ledger 2,346,000
Credit balance in sales ledger 140,000

Total for the year ended 2023

Cheques received from credit customers 2,145,000
Cheques paid to credit suppliers 3,013,000
Cheque received from credit customer 350,000
(included in the cheques received ), later
dishoroured
Discount allowed 55,000
Discount received 90,000
Returns by credit customer 276,000
Returns to credit suppliers 198,000
 Contra entry 182,000
Bad debts written off 62,000
1 April, 2023
Debit balance in sales ledger 2,670,000
Credit balance in sales ledger 86,000

REQUIRED
(a) Select the relevant figures and prepare the sales ledger control account for the month of
March 2023. Insert a figure for credit sales.
Balance the account and bring down the balances on 1 April 2023.