F3 Control Accounts

5 Questions

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Account Quizzes & Trivia

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Questions and Answers
  • 1. 
    A company purchases all goods on credit. The following payables ledger control account contains some errors: Payables ledger control account Debit             $ Purchases 963,200 Discounts received 12,600 Contras with amounts receivable in receivables ledger 4,200 Closing balance 410,400 –––––––– 1,390,400 ———— Credit                         $ Opening balance 384,600 Cash paid to suppliers 988,400 Purchases returns 17,400 –––––––– 1,390,400 ———— What should the closing balance be when the errors have been corrected?
    • A. 

      $325200

    • B. 

      $350400

    • C. 

      $358800

    • D. 

      $376800

  • 2. 
    An inexperienced bookkeeper has drawn up the following payables ledger control account, which contains errors: Payables ledger control account Debit Balances                                                           $              Credit Balances                $ Opening balance(amounts owed to suppliers) 212,500     Purchases                  447,000 Cash paid to suppliers                                          491,000        Discounts received     2,700 Purchases returns                                                     7,600       Contras against receivables                                                                                                                ledger                        12,800 Refunds received from suppliers                           3,200         Closing balance          251,800                                                                                     714,300                                             714,300 What should the closing balance be after correcting the errors made in preparing the account?
    • A. 

      $148600

    • B. 

      $276400

    • C. 

      $171000

    • D. 

      $254000

  • 3. 
    A payables ledger control account showed a credit balance of $856,460. The payables ledger balances totalled $871,260. Which of the following possible errors could account in full for the difference?
    • A. 

      $14,800 cash paid to a supplier was entered on the credit side of the supplier’s account in the payables ledger.

    • B. 

      The total of discounts allowed $31,300 was recorded as a debit entry in the payables ledger control account instead of the correct figure for discounts received of $16,500.

    • C. 

      The total of discounts received $7,400 has been entered on the credit side of the payables ledger control account.

    • D. 

      A contra against a receivables ledger debit balance of $7,400 has been entered on the credit side of the payables ledger control account.

  • 4. 
    Dee received a statement from one of its suppliers, Zed, showing a balance due of $9,440. The amount due according to the payables ledger account of Zed in Dee’s records was $4,770. Comparison of the statement and the ledger account revealed the following. 1 A cheque sent by Dee for $3,700 has not been allowed for by Zed 2 The ledger account of Dee has not been adjusted for a cash discount of $80 disallowed by Zed because the payment was too late to earn the discount. What difference remains between the two companies’ records after adjusting for these items?
    • A. 

      $1050

    • B. 

      $10430

    • C. 

      $10590

    • D. 

      $890

  • 5. 
    The total of the list of balances in the payables ledger of Bounce on 30 June 2010 was $289,500. This balance did not agree with the payables ledger control account balance. The following errors were discovered. 1 The total of purchases returns was undercast by $3,000. 2 A contra entry of $690 was recorded in the payables ledger control account but not in the payables ledger. 3 An invoice for $8,720 was recorded in the supplier’s account as $7,820. What amount should Bounce record in its statement of financial position as the amount of trade payables as at 30 June 2010?
    • A. 

      $291090

    • B. 

      $289710

    • C. 

      $286710

    • D. 

      $291510