F3 Control Accounts

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Sehrish
S
Sehrish
Community Contributor
Quizzes Created: 2 | Total Attempts: 740
| Attempts: 669
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/5 Questions

    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?

    • $325200
    • $350400
    • $358800
    • $376800
Please wait...
About This Quiz

This F3 Control Accounts quiz assesses understanding of payables ledger control accounts, including error corrections and reconciliations. It tests skills crucial for accounting accuracy and financial compliance, making it relevant for students and professionals in accounting.

F3 Control Accounts - Quiz

Quiz Preview

  • 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?

    • $148600

    • $276400

    • $171000

    • $254000

    Correct Answer
    A. $148600
    Explanation
    The closing balance should be $148,600 after correcting the errors made in preparing the account. This can be determined by subtracting the total credit balances ($714,300) from the total debit balances ($865,900) and taking into account the discounts received ($2,700) and refunds received from suppliers ($3,200). The correct calculation would be: $865,900 - $714,300 + $2,700 - $3,200 = $148,600.

    Rate this question:

  • 3. 

    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?

    • $1050

    • $10430

    • $10590

    • $890

    Correct Answer
    A. $890
    Explanation
    Zed statement: amount owed by Dee 9,440
    Deduct: Cheque sent by Dee (3,700)
    Adjusted balance 5,740
    Balance in Dee’s payables ledger account for Zed 4,770
    Adjusted for discount not allowed 80
    Adjusted balance 4,850
    Unexplained difference 890

    Rate this question:

  • 4. 

    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?

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

    • 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.

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

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

    Correct Answer
    A. 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.
    Explanation
    The correct answer is that 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. This error would result in an overstatement of the credit balance in the payables ledger control account by $14,800 ($31,300 - $16,500), which accounts for the difference between the credit balance of $856,460 and the total of payables ledger balances of $871,260.

    Rate this question:

  • 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?

    • $291090

    • $289710

    • $286710

    • $291510

    Correct Answer
    A. $289710
    Explanation
    Total of payables ledger balances 289,500
    Contra entry not recorded in payables ledger (690)
    Invoice under-stated in payables ledger (8,720 – 7,820) 900
    Adjusted balance 289,710
    This should be the correct balance in the payables ledger control account after the
    error in recording total purchases returns is corrected.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 25, 2017
    Quiz Created by
    Sehrish
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.