Saturday, June 15, 2019

PRACTICE QUESTIONS ON CONTROL ACCOUNTS FOR BOTH FULL TIME AND PART TIME

1. The following balances were extracted from the books of Aiyegbaogbon Enterprises on
      31st December, 2018.
                                                                                    N
Sales ledger, debit balance 1/1/2018                           98,260
Sales ledger, credit balance 1/1/2018                            2,370
Bought ledger, credit balance 1/1/2018                      72,190
Bought ledger, debit balance 1/1/2018                         4,210
Cash purchases                                                            27,380
Cash sales                                                                     19,360
Accounts settled by contra                                            6,220
Bills dishonoured                                                           7,500
Bills debts written off                                                    5,260
Bills of exchange drawn on customers                        34,730
Returns Inward                                                              7,450
Returns Outwards                                                          8,920
Cash received from debtors                                       689,230
Cash paid to suppliers                                                495,140
Discount Received                                                       19,320
Discount Allowed                                                       24,750
Cash refunded to customers                                          1,270
Sales ledger, debit balance 31/12/2018                      120,570
Sales ledger, credit balance 31/12/2018                         2,010
Bought ledger, debit balance 31/12/2018                      3,340
Bought ledger, credit balance 31/12/2018                   55,340
Show all necessary workings.
You are required to prepare:
(a)    Credit Sales
(b)   Credit Purchases
(c)    Total Sales
(d)   Total Purchases

2.    (a)  Define control Account and list five reasons for control accounts.
     (b)  Mention five each items to be found in sales ledger control account and purchases
          ledger control account.
    (c ) On January 1, 2019 the sales ledger balance of Foyegbe was N12,000 debit while the
          bought ledger balance was N4,850 credit.
            The following transactions took place in the month of January 2019.
                                                                                                    N
            Credit sales                                                                 175,900
            Bad debt                                                                         4,225
            Dishonoured cheque                                                       6,250
            Credit purchases                                                           90,300
            Returns inwards                                                              7,850
            Bills receivable                                                              22,500
            Cash received from debtors                                          78,000
            Cash paid to creditors                                                   57,000
            Discount allowed                                                            2,250
            Discount received                                                           4,725
            Cheques from debtors                                                   37,500
            Bills payable                                                                  10,750
            Debit balance in bought ledger transferred
to sales ledger                                                                 1,300
Discounts allowed but subsequently disallowed               750
Discounts received but subsequently withdrawn              725
Required: Prepare:
(i)                 Total Debtors Account
(ii)               Total Creditors Account

                                          BEST OF LUCK!
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                PATRIOT ODUNARO B.J (08038454008)

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