A company maintains control accounts in its general ledger. The total figure for trade payables extracted from the suppliers’ ledger is USD19,579.The figure does not agree with the balance on the payables ledger control account. Thefollowing errors have been identified:(i) A contra entry of USD5,100 between a customer and a supplier has not been recordedin the general ledger(ii) Discounts received of USD3,110 had been recorded in the general ledger only.What is the correct balance on the payables ledger control account?
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1 .The following balances on account appeared in Midget’s general ledger at 31 October 2014: USD Receivables ledger control account 63,158 Payables ledger control account 32,000 Loss allowance for trade receivables account 3,158 During the year to 30 September 2015 the following summarised transactions occurred: USD Sales on credit 550,000 Purchases on credit 276,000 Sales returns 6,000 Purchases returns 4,000 Cash received from customers (excluding an irrecoverable debt recovered) 514,268 Cash paid to suppliers 258,100 Discount allowed to customers 12,790 Discount received from suppliers 5,900 Irrecoverable debts written off 4,100 Amount recovered from customer whose debt had been written off as irrecoverable in previous year 542 Customer and supplier accounts settled by setting off one against the other 4,000 The firm’s policy is to make a general loss allowance for trade receivables amounting to 5% of yearend accounts receivable.What is the balance on the payables ledger control account at 30 September 2015?
A USD36,000 B USD40,000 C USD41,900 D USD45,900
2 .The following balances on account appeared in Midget’s general ledger at 31 October 2014: USD Receivables ledger control account 63,158 Payables ledger control account 32,000 Loss allowance for trade receivables account 3,158 During the year to 30 September 2015 the following summarised transactions occurred: USD Sales on credit 550,000 Purchases on credit 276,000 Sales returns 6,000 Purchases returns 4,000 Cash received from customers (excluding an irrecoverable debt recovered) 514,268 Cash paid to suppliers 258,100 Discount allowed to customers 12,790 Discount received from suppliers 5,900 Irrecoverable debts written off 4,100 Amount recovered from customer whose debt had been written off as irrecoverable in previous year 542 Customer and supplier accounts settled by setting off one against the other 4,000 The firm’s policy is to make a general loss allowance for trade receivables amounting to 5% of yearend accounts receivable.What is the total charge to profit or loss for the year to 30 September in respect of irrecoverable debts?
A USD4,000 B USD4,100 C USD4,542 D USD7,158
3 .The following information relates to a business for the year ended 31 December 2015: USD Trade receivables at 1 January 2015 289,376 Trade payables at 1 January 2015 301,972 Discounts received 21,069 Cash sales 69,589 Cash from credit customers 795,373 Irrecoverable debts to be written off 9,550 Discounts allowed 12,956 Returns inwards 7,000 Amounts paid to suppliers 475,353 Returns outwards 3,525 Credit sales 626,575 Receivables to be allowed for (additional to those to be written off) 9,527 What is the balance on the trade receivables ledger control account at 31 December 2015?
A USD81,545 B USD91,072 C USD104,028 D USD101,501
4 .A company maintains control accounts in its general ledger. An irrecoverable debt of USD900 was written off an account in the receivables ledger, but not recorded in the control account.What corrective action is required?
A Receivables ledger control account: None; List of balances: Reduce total by USD900 B Receivables ledger control account: Dr USD900; List of balances: None C Receivables ledger control account: None; List of balances: Increase total by USD900 D Receivables ledger control account: Cr USD900; List of...
5 .A company maintains control accounts in its general ledger. USD479 was recovered from a customer. A 95% specific loss allowance had been made against this account last year. Total cash received has been entered in the control account, but no entry has been made in the customer’s account in the receivables ledger.What is the correcting action?
A Receivables ledger control account: Dr USD455; List of balances: Decrease total by USD455 B Receivables ledger control account: Cr USD479; List of balances: None C Receivables ledger control account: Cr USD455; List of balances: Increase total by USD455 D Receivables ledger control account: None; ...
7 .On checking a list of balances of suppliers’ ledger accounts, it is found that the total is USD2,250 more than the balance on the payables ledger control account.Which of the following errors could, by itself, account for this difference?
A The total of contra entries against receivables accounts is overstated by USD1,125 B Purchases day book has been overcast by USD2,250 C A credit note for USD1,125 has been omitted from a supplier’s ledger account D A supplier’s ledger account with a debit balance of USD1,125 has been treated a...
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