Chapter 16 Control accounts

A credit sales of goods is recorded under which control account and what will the particulars of the transaction be in that control account?

• Trade receivables control account as Purchases

• Trade payables control account as Sales

• Trade receivables control account as Sales

• Trade payables control account as Purchases

A credit purchase of goods is recorded under which control account and what will the particulars of the transaction be in that control account?

• Trade payables control account as Cost of sales

• Trade payables control account as Purchases

• Trade receivables control account as Sales

• Trade receivables control account as Cost of sales

Returns to suppliers which were made on credit is recorded under the trade payables control account. What will the particulars be recorded as?

• Sales returns

• Purchase returns

• Inventory

• Suppliers

Cheques received from customers is recorded under which control account and what will the particulars be recorded as?

• Trade receivables control account as Cash at bank

• Trade receivables control account as Sales revenue

• Trade payables control account as Trade receivables

• Trade payables control account as Inventory

Discount received is recorded under which control account?

• Trade receivables control account

• Trade payables control account

The offset between trade payables and trade receivables is recorded under which control account?

• Trade payables control account only

• Trade receivables control account only

• Both control accounts

Harpreet is a credit customer of Suzanna. Harpreet’s account in Suzanna’s books shows a credit balance.

How could the credit balance have arisen?

• A cheque from Harpreet was dishonoured.

• Harpreet has overpaid his account.

• Interest was charged by Suzanna.

• Suzanna offered a trade discount.

State the main purpose of control accounts - to act as independent check on accuracy of entries in

• Subsidiary ledgers

• General ledgers

• General Journal

• Trial Balance

The balances from the control accounts are used to draw up the

• Trial Balance and Balance Sheet

• General Journal and Sales Journal

• General Ledger and Subsidiary Ledger

• Income Statement and Balance Sheet

Name the Ledger in which Trade receivables control account is found.

• Sales Ledger

• Purchases Ledger

• General Ledger

• General Journal