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 2019 and so calculate the creditor and debtor final
position.
Tshs
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 2018 the following balances existed in the company's
accounting records, and the control accounts agreed:
Sales ledger control account
Purchase ledger control account
Debit
Tshs
188,360,000
120,000
Credit
Tshs
2,140,000
89,410,000
The following are the totals of transactions which took place during May 2018, asextracted
from the company's records.
Credit sales
Credit purchases
Returns inwards
Returns outwards
Cash received from customers
Cash paid to suppliers
Cash discounts allowed
Cash discounts received
Irrecoverable debts written off
Contra settlements
Tshs
101,260,000.0
68,420,000.0
9,160,000.0
4,280,000.0
91,270,000.0
71,840,000.0
1,430,000.0
880,000.0
460,000.0
480,000.0
At 31 May 2018 the balances on the customers and supplier personal accounts were extracted
and totalled as follows:
Debit balances
Tshs
To be ascertained
90,000
Sales ledger
Purchase ledger
Credit balances
Tshs
2,680,000
To be ascertained
Required:
Prepare sales and purchases ledger control accounts.
QUESTION THREE
Consider the following balances
Sales ledger
Balances at 1st May 2017
Tshs 89,300,000
Purchases ledger
Tshs75,210,000
Next enter the transaction from the list for May 2017 in relevant control account
Credit sales
Credit purchases
Returns inwards
Returns outwards
Cash received from customers
Cash paid to suppliers
Cash discounts allowed
Cash discounts received
Irrecoverable debts written off
Contra settlements
Tshs
101,260,000.0
68,420,000.0
9,160,000.0
4,280,000.0
91,270,000.0
71,840,000.0
1,430,000.0
880,000.0
460,000.0
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 2019.
Sales ledger control account balance 1 April 2019
Cheques received from credit customers
Discount allowed
Bad debts written off
Cash sales
Credit sales
Returns inwards
Tshs
64,350,000
136,800,000
5,250,000
7,900,000
10,750,000
153,400,000
8,100,000
Required:
Prepare the sales ledger control account for the month ended 30 April 2019.
QUESTION FIVE
On 1 April 2018, Yebweyebwe sales ledger control account showed the following
balances: Tshs20,450,000 debit and Tshs. 600,000 credit.
During April the following transactions were recorded:
Credit sales
Tshs
50,500,000
Cash sales
10,000,000
Returns from credit customers
Receipts from credit customers
Refunds to credit customers
Discount allowed
Bad debt written off
700,000
48,600,000
750,000
1,200,000
800,000
On 1 May 2018, Yebweyebwe’s sales ledger control account showed a credit
balance of Tshs180,000. The debit balance is to be determined.
REQUIRED
Prepare the sales ledger control account for the month of April 2018. Balance
the account and bring down the balances.
QUESTION SIX
The following information is available from the books of Kijuna for August 2019.
Trade receivables at 1 August 2019
Credit sales
Cash sales
Sales returns from credit customers
Cheques received from credit customers
Discount allowed
Bad debts written off
Interest charged on overdue accounts
REQUIRED
Tshs
27,520,000
32,400,000
19,970,000
1,700,000
40,150,000
780,000
2,900,000
600,000
Prepare the sales ledger control account for August. Balance the account and bring down the
balance on 1 September 2019
QUESTION SEVEN
Tsang is in business buying and selling goods on credit. The following information is
available for the month of March 2019.
Tshs
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 2019.
QUESTION EIGHT
Mtoto Mary buys and sells on credit. She supplied the following information for the month
ended 31 May 2016.
2016
Tshs
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 Tshs. 86,000,000. A cheque received and banked on
8 May from John Bakery for Tshs.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 2016. Balance the
account at that date and bring the balance down on 1 June 2013.
QUESTION NINE
The following information was obtained from the books of Sambwiya Mbwile.
1 April 2017
Sales ledger’s balance
Purchases ledger’s balance
30 April 2017 Credit sales for month
Credit purchases for month
Cash sales for month
Cash purchases for month
Sales returns for month
Purchase returns for month
Cheques received from trade receivables
Tshs in ‘000,000’
7 190
4 120
46 300
29 900
14 360
9 750
1 070
940
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.
Tshs in thousands
1 February 2019
Trade receivables balance
14 900 Dr
Trade payables balance
17 160 Cr
28 February 2019
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 2019
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 2019.
QUESTION ELEVEN
The total of the debtor balances was Tshs..5,692,348. Sales ledger control account balance was
Tshs..8,115,740
Upon investigation you discover the following errors in the subsidiary ledger:
(a) A debit balance of Tshs..89,577 was listed as Tshs..98,577.
(b) An invoice to a customer for Tshs..1,275,050 was entered on the credit side of the
customer’s account.
(c) A credit note to a customer for Tshs..100,000 was not posted from the sales returns day
book.
(d) A credit balance of Tshs..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 31st
December 2021 has been prepared from the following information:
Tshs.
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 Tshs.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 Tshs. 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 Tshs.
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 Tshs.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 Tshs. 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 Tshs. 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 Tshs. 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 2019.
Sales ledger balances at 1 July 2018
Cash received from debtors
Discount allowed
Return inwards
Cash sales
Bad debts written off
Credit sales for the year
Debit balances transferred to purchase ledger accounts
Tshs.
62,540,000
212,390,000
3,470,000
4,820,000
58,330,000
1,960,000
249,490,000
3,410,000
The total of Bob Charles’s sales ledger balances amounts to Tshs.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 Tshs.930,000 was omitted from the list of debtors.
(b) Return inwards formal was under cast by Tshs.870,000.
(c) Fei Toto had returned goods worth Tshs.540,000 but this sum was recorded as
Tshs.450,000 in his account.
(d) Discount allowed Tshs.270,000 had been posted to the wrong side of debtors account.
(e) A debtor was charged with Tshs.80,000 interest but it was overlooked by the
accountant.
(f) Sales daybook had been over cast by Tshs.1,360,000.
(g) Bad debts of Tshs.190,000 is entered in the control account but is not posted to the
customer’s account.
(h) Discount allowed of Tshs.350,000 had been entered in the cash book but is not entered
in the customer’s account.
(i) Return inwards Tshs.440,000 from Bakari Nondo had not been recorded in the books.
(j) Fiston Mayele was both a customer and a supplier. He had a balance of Tshs.270,000
in the purchase ledger and Tshs.190,000 in the sales ledger. The contra entry was
made in Fiston Mayele’s account but no entry was made in the control account.
(k) A sales invoice of Tshs.1,490,000 was not entered in the books.
(l) A credit sale of Tshs.1,860,000 to Yanick Bangala 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 2019.
(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 2017 Donald Ngoma listed the balances contained in his sales ledger. These
balances totaled Tshs.18,040,000 but on the same date the balance of the sales ledger
control account was Tshs.18,910,000. After investigation the following errors were found.
(a) A debtor balance of Tshs.490,000 had been counted in total credit sales but had not
been posted to the customer’s account.
(b) Discount allowed of Tshs.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 Tshs.120,000.
(d) Returns of Tshs.170,000 from Kamusoko had not been recorded in the books.
(e) Claotus Chama was both a customer and a supplier. His purchases ledger balance
of Tshs.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 Tshs.460,000.
(g) A debtor account was charged with Tshs.20,000 interest but it was not recorded
in the control account.
(h) Mgalike returned goods worth Tshs.280,000 but this sum was recorded as
Tshs.820,000 in his account.
(i) A debt of Tshs.110,000 had proved bad but no entry had been passed in the books.
(j) Discount allowed of Tshs.80,000 had been posted to the debit side of Mwaisa
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.