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:
Sales ledger control account
Purchase ledger control account
Debit
TZS
188,360,000
120,000
Credit
TZS
2,140,000
89,410,000
The following are the totals of transactions which took place during May 2022, as
extracted 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
TZS
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 2022 the balances on the customers and supplier personal accounts were extracted
and totalled as follows:
Debit balances
TZS
To be ascertained
90,000
Sales ledger
Purchase ledger
Credit balances
TZS
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 2021
TZS 89,300,000
Purchases ledger
TZS75,210,000
Next enter the transaction from the list for May 2021 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
TZS
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 2021.
Sales ledger control account balance 1 April 2021
Cheques received from credit customers
Discount allowed
Bad debts written off
Cash sales
Credit sales
Returns inwards
TZS
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 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:
Credit sales
TZS
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.
Trade receivables at 1 August 2022
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
TZS
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 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.
1 April 2022 Sales ledger’s balance
Purchases ledger’s balance
30 April 2022 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
TZS 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.
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)
(ii)
(iii)
(iv)
(v)
(vi)
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.
The discounts allowed column in the cash book had been overcast by TZS. 1,080.
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.
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.
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.
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.
Sales ledger balances at 1 July 2021
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
TZS.
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 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:
Trade payables
Trade receivables
TZS
7,000,000
9,500,000
Total for the year ended 2023
Sales (all credit)
Sales returns
Purchases (all credit)
Receipts from credit customers
Payment to credit suppliers
Refund to credit customer
Discount allowed
Discount received
Bad debts written off
95,100,000
1,050,000
63,600,000
92,750,000
59,000,000
450,000
2,100,000
850,000
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
Debit balance in sales ledger
Credit balance in sales ledger
Total for the year ended 2023
Cheques received from credit customers
Cheques paid to credit suppliers
Cheque received from credit customer
(included in the cheques received ), later
dishoroured
Discount allowed
Discount received
Returns by credit customer
Returns to credit suppliers
TZS
2,346,000
140,000
2,145,000
3,013,000
350,000
55,000
90,000
276,000
198,000
Contra entry
Bad debts written off
1 April, 2023
Debit balance in sales ledger
Credit balance in sales ledger
182,000
62,000
2,670,000
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.