IGCSEAccountingEdexcelIntroduction to Bookkeeping & AccountingExam QuestionsIntroduction to Control ProcessesControl Accounts

Control Accounts (Edexcel IGCSE Accounting: Introduction to Bookkeeping & Accounting): Exam Questions

Exam code: 4AC1

2 hours17 questions
1a
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8 marks

The following additional information has been extracted from Ling’s books for the month of March 2024.

$

Trade receivables ledger balances at 1 March 2024

84290

Cash sales

12400

Contra / set off to trade payables ledger

810

Credit customer’s cheque dishonoured

260

Credit sales

93100

Discount allowed

4650

Discount received

2340

Receipts from credit customers

87360

Returns inwards

4020

Returns outwards

6310

Prepare the trade receivables ledger control account for the month of March 2024. Balance the account at 31 March 2024 and bring the balance down on 1 April 2024.

Trade Receivables Ledger Control Account

Date
2024

Details

$

Date 2024

Details

$

How did you do?

1b
2 marks

Explain one reason why a contra entry may arise.

How did you do?

2
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10 marks

Vijul provided the following information for the year ended 31 March 2023.

$

Trade receivables ledger control account balance at 1 April 2022

19900

Trade receivables ledger control account balance at 31 March 2023 To be calculated

To be calculated

Cash sales

1444

Credit sales

198301

Customer cheque dishonoured

210

Contra/set off to trade payables ledger

1325

Discount allowed

1274

Discount received

1306

Irrecoverable debts

350

Receipts from credit customers

196612

Returns inwards

570

Returns outwards

682

Prepare the trade receivables ledger control account for the year ended 31 March 2023.

Balance the account on this date and bring the balance down on 1 April 2023.

Trade Receivables Ledger Control Account

Date

Details

$

Date

Details

$

How did you do?

3
1 mark

Identify what the closing balance on a trade receivables ledger control account represents.

  • The amount owing by credit customers

  • The amount owing to credit suppliers

  • The total amount of credit sales for the year

  • The total amount received from credit customers for the year

Choose your answer

4
5 marks

Identify, indicating with a tick (✓), on which side of a trade payables ledger control account each would be entered.

Debit side

Credit side

Credit purchases

Discount received

Interest charged

Returns outwards

Transfer to trade receivables ledger control account

How did you do?

5
1 mark

Identify which item should be entered on the credit side of the trade payables ledger control account.

  • Cash purchases

  • Credit purchases

  • Discounts received

  • Returns outwards

Choose your answer

6a
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10 marks

Beth provided the following information for the month ended 31 October 2022

$

At 1 October 2022

Trade receivables ledger balances

68 480

For the month of October 2022

Cash sales

8 435

Contra/set off trade payables ledger

558

Credit sales

56 346

Customer’s cheque dishonoured

345

Discount allowed

412

Discount received

539

Irrecoverable debts

260

Receipts from credit customers

60 940

Returns inwards

1 224

Returns outwards

922

At 31 October 2022

Trade receivables ledger credit balances

156

Trade receivables ledger debit balances

To be calculated

Prepare the trade receivables ledger control account for the month ended 31 October 2022. Balance the account on this date and bring the balances down on 1 November 2022.

Trade Receivables Ledger Control Account

Date

Details

$

Date

Details

$

How did you do?

6b
5 marks

Beth is concerned about the time she is taking to prepare the trade receivables ledger control account.

Explain to Beth the benefits of maintaining a trade receivables ledger control account.

How did you do?

7
1 mark

Identify what will be confirmed by preparing a trade payables ledger control account.

  • All purchase invoices have been posted

  • All supplier payments have been processed

  • Entries have been posted to the correct personal accounts

  • The closing balance agrees with the total of individual balances

Choose your answer

8
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8 marks

Lucas provided the following information for the month ended 31 March 2022.

$

Trade receivables ledger balances at 1 March 2022

48220

Trade receivables ledger balances at 31 March 2022

47830

Cash sales

8300

Contra/set off to trade payables ledger

270

Credit customer’s cheque dishonoured

360

Credit sales

41480

Discount allowed

410

Discount received

120

Irrecoverable debts

1930

Receipts from credit customers

38590

Returns inwards

1030

Returns outwards

1950

Prepare the trade receivables ledger control account for the month ended 31 March 2022. Balance the account on this date and bring the balance down on 1 April 2022.

Trade Receivables Ledger Control Account

Date

2022

Details

$

Date

2022

Details

$

How did you do?

9
1 mark

Which item would be recorded as a credit entry in a trade payables ledger control account?

  • Amounts paid to credit suppliers

  • Contra with the trade receivables ledger control account

  • Discount received from credit suppliers

  • Interest charged on late payment

Choose your answer

10
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10 marks

Eldin provided the following information relating to his trade receivables ledger control account for the month ended 31 August 2020.

$

Credit sales

29 535

Customer overpayment refunded by cheque

160

Discount allowed

984

Interest charged

119

Irrecoverable debts

597

Receipts from credit customers

36 250

Returns inwards

380

Trade payables set-off

665

Credit balances at 31 August 2020

240

Prepare the trade receivables ledger control account for the month ended 31 August 2020. Balance the account on this date and bring the balances down at 1 September 2020.

Trade Receivables Ledger Control Account

Date

2020

Details

$

Date

2020

Details

$

Aug 1

Balance b/d

46 220

How did you do?

11
1 mark

Identify which of the following would be recorded on the credit side of a trade payables ledger control account.

  • Amounts paid to credit suppliers

  • Contra with the trade receivables ledger control account

  • Discount received from credit suppliers

  • Interest charged by a supplier on late payment

Choose your answer

12a
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9 marks

Chen provided the following information for the month ended 31 March 2021.

$

Cash purchases

2 740

Cash sales

5 650

Contra/set-off

120

Credit purchases

32 550

Credit sales

38 910

Customer’s cheque dishonoured

410

Discount allowed

720

Discount received

390

Interest charged on a customer’s overdue account

80

Irrecoverable debt

450

Payments to credit suppliers

36 070

Receipts from credit customers

44 600

Returns inwards

1 420

Returns outwards

1 050

At 31 March 2021

Trade payables ledger balances

To be calculated

Trade receivables ledger balances

To be calculated

Prepare the trade receivables ledger control account for the month ended 31 March 2021. Balance the account on this date and bring the balance down on 1 April 2021.

Trade Receivables Ledger Control Account

Date

2021

Details

$

Date

2021

Details

$

1 Mar

Balance b/d

56 240

How did you do?

12b
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6 marks

Prepare the trade payables ledger control account for the month ended 31 March 2021. Balance the account on this date and bring the balance down on 1 April 2021.

Trade Payables Ledger Control Account

Date

2021

Details

$

Date

2021

Details

$

1 Mar

Balance b/d

42 580

How did you do?

13
1 mark

Which should be entered on the credit side of the trade receivables control account?

  • Credit sales

  • Discount allowed

  • Interest charged

  • Returns outwards

Choose your answer

14a
2 marks

State two reasons for maintaining a trade payables ledger control account.

How did you do?

14b
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10 marks

On 31 March 2020 Gali provided the following information related to credit suppliers.

$

Balance at 1 March 2020

16 250

Totals for the month

Credit purchases

18 230

Returns outwards

615

Interest charged

30

Trade receivables ledger balance set off

465

Payments made

14 540

Discount received

235

Refund received

55

Prepare the trade payables ledger control account for the month of March 2020. Balance the account on 31 March 2020 and bring the balance down on 1 April 2020.

Trade Payables Ledger Control Account

Date

Details

$

Date

Details

$

How did you do?

14c
3 marks

State three reasons why a business may receive a refund from a credit supplier.

How did you do?

15
1 mark

Which will be recorded on the debit side of a trade receivables ledger control account?

  • Credit note

  • Discount allowed

  • Irrecoverable debt

  • Returned cheque

Choose your answer

16a
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10 marks

Omar provided the following information relating to his trade payables ledger control account for the month ended 30 November 2019.

$

At 1 November 2019

Credit balances

46 935

Debit balances

290

For the month of November 2019

Cash purchases

2 650

Credit purchases

36 940

Discount received

612

Interest charged

266

Payments to credit suppliers

32 418

Returns outwards

358

Trade receivables ledger set-off

220

At 30 November 2019

Debit balances

135

Prepare the trade payables ledger control account for the month ended 30 November 2019. Balance the account on this date and bring the balances down at 1 December 2019.

Trade Payables Ledger Control Account

Date

2019

Details

$

Date

2019

Details

$

How did you do?

16b
1 mark

State one possible reason why Omar has a debit balance on the trade payables ledger control account.

How did you do?

16c
4 marks

Explain two reasons for preparing a trade payables ledger control account.

How did you do?

17a
5 marks

Evaluate why a business maintains ledger control accounts.

How did you do?

17b
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1 mark

Josephine provided the following information.

$

At 1 June 2017

Trade receivables ledger control account balance

65 450

For the year ended 31 May 2018

Cash sales

80 100

Credit sales

255 895

Irrecoverable debts

11 500

Payables ledger set off

7 895

Receipts from credit customers

228 955

Returns inwards

4 567

Prepare the following account for the year ended 31 May 2018. Balance the account on that date and bring the balance down on 1 June 2018.

Trade Receivables Ledger Control Account

Date

Details

$

Date

Details

$

How did you do?

17c
3 marks

State three other items that may appear in a trade receivables ledger control account.

How did you do?