Question Tag: Control Accounts

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FA – May 2012 – L1 – SA – Q17 – Control Accounts

Identifying an advantage not associated with control accounts.

Question

The advantages of Control Accounts do NOT include:

A. Locating errors
B. Facilitating the extraction of trial balance
C. Detecting fraud
D. Checking on the accuracy of ledger entries
E. Discouraging adherence to double entry principle

Answer

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Tags: Control Accounts, Error Detection, Trial Balance
Level: Level 1

Topic: Control Accounts
Series: MAY 2012

FA – May 2012 – L1 – SA – Q15 – Control Accounts

Identifying items not credited to the Accounts Payable Control Account.

Question

Which of the following items should NOT be on the credit side of Accounts Payable Control Account?

A. Total of purchases day book
B. Interest charged by suppliers
C. Transfer of debit balance to accounts receivable ledger
D. Transfer of credit balance from accounts receivable ledger
E. Set-offs

Answer

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Tags: Control Accounts, Ledger Entries, Payables
Level: Level 1

Topic: Control Accounts
Series: MAY 2012

FA – May 2012 – L1 – SA – Q2 – Double-Entry Accounting Principles

Identifying the shortcoming of single entry book-keeping.

Question

Which of the following is NOT a shortcoming of single entry book-keeping?

A. A trial balance is not available
B. Profits are overstated
C. There are no subsidiary books
D. There are no control accounts
E. There are no ledger accounts.

Answer

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Tags: Book-keeping, Control Accounts, Trial Balance
Level: Level 1

Topic: Double-Entry Accounting Principles
Series: MAY 2012

FA – Nov 2011 – L1 – SA – Q20 – Control Accounts

This question asks for another name for the Debtors Control Ledger Account.

Question

Another name for Debtors Control Ledger Account is?

Answer

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Tags: Control Accounts, Sales Ledger
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q7 – Control Accounts

This question asks how contra entries in control accounts are corrected.

Question

By what means do you effect correction of contra entries in control accounts?

Answer

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Tags: Contra Entries, Control Accounts
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q3 – Control Accounts

This question tests knowledge on the description and function of control accounts in accounting.

Question

Which of the following describes a Control Account?
A. Conglomerate of ledger system
B. Combined ledger system
C. Self-balancing ledger system
D. Standardized ledger system
E. List of balances

Answer

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Tags: Control Accounts, Ledger System
Level: Level 1

Topic: Control Accounts
Series: NOV 2011

FA – Nov 2020 – L1 – SA – Q17 – Control Accounts

Identifies items recorded on the credit side of a receivables ledger control account.

Question

Which of the following would be on the credit side of the receivables ledger control account?

I. Cash received
II. Irrecoverable debts
III. Discount allowed
IV. Sales

A. I, II, and III
B. I, III, and IV
C. II and IV
D. I and IV
E. I, II, III, and IV

Answer

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Tags: Control Accounts, Credit Side, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q6 – Control Accounts

Identifies a feature that does not describe a control account.

Question

Which of the following is NOT a feature of a control account?
A. It is maintained by the financial controller.
B. It is used to check arithmetical accuracy of the ledger to which it relates.
C. The ledger to which it relates is known as self-financing.
D. It helps in the detection of fraud and error.
E. The entries therein appear on the same side as they do in the individual accounts.

Answer

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Tags: Control Accounts, Fraud Detection, Ledger Accuracy
Level: Level 1

Topic: Control Accounts
Series: NOV 2020

FA – Nov 2012 – L1 – SA – Q7 – Control Accounts

Identifying a source that does not provide information for preparing control accounts.

Question

Source of information for preparing Control Accounts EXCLUDES:

A. Purchases journal
B. Cash discount
C. Sales day book
D. Cash account
E. Opening Statement of Financial Position

Answer

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Tags: Cash, Control Accounts, Prime Entry, Purchases
Level: Level 1

Topic: Control Accounts
Series: NOV 2012

FA – May 2014 – L1 – SA – Q7 – Control Accounts

Identifies a feature that is not characteristic of control accounts.

Question

Which of the following is NOT a feature of a control account?
A. It is maintained by the financial controller
B. It is used to check arithmetical accuracy of the ledger to which it relates
C. The ledger to which it relates is known as self-financing
D. It contains the total of entries in individual accounts
E. The entries therein appear on the same side as they do in the individual accounts

Answer

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Tags: Control Accounts, Financial Records, Ledger Accuracy
Level: Level 1

Topic: Control Accounts
Series: MAY 2014

FA – Nov 2015 – L1 – SB – Q5c – Bank Reconciliation

Reconcile accounts receivable ledger control with ledger balances and clear the suspense account.

Question

The trial balance of Mbobo Limited includes the following items:

The following information is available:

The total of debit balances in the accounts receivable ledger is ₦116,374, and the total of credit balances is ₦1,234.
The accounts receivable ledger includes a debit balance of ₦700 for Entity C, and the accounts payable ledger includes a credit balance of ₦800 relating to Entity C. Only the net amount will eventually be paid.
Included in the credit balances in the accounts receivable ledger is a balance of ₦600 in the name of H. Potoka. This arose because a sales invoice for ₦600 had earlier been posted in error from the sales day book to the debit of the account of M. Potoka in the accounts payable ledger.
An allowance of ₦300 granted to a customer for some damaged goods had been omitted from the appropriate account in the accounts receivable ledger. This allowance had been included in the accounts receivable control account.
A cash receipt from a credit customer for ₦345 had been entered in the cash book as ₦245.
The bank balance of ₦1,700 had been included in the trial balance, in error, as an overdraft.
The debit balance on the insurance account in the nominal ledger of ₦3,456 has been included in the trial balance as ₦3,546.

Required:
(i) Prepare a reconciliation of the accounts receivable ledger control account and the accounts receivable ledger balances (8 marks).
(ii) Open a suspense account and post the entries required to clear this account (2 marks).

Answer

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Tags: Accounts Receivable, Control Accounts, Reconciliation, Suspense account
Level: Level 1

Topic: Bank reconciliations
Series: NOV 2015

FA – Nov 2021 – L1 – SA – Q6 – Control Accounts

This question explores the role of control accounts in accounting.

Question

The control account is used in facilitating:
A. The location of errors in the various accounts
B. To update bank transactions
C. The payment of debts and liabilities of the firm
D. Location of petty cash book error
E. Balancing the trial balance

Answer

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Tags: Control Accounts, Error Detection, Multiple Choice
Level: Level 1

Topic: Control Accounts
Series: NOV 2021

MI – May 2022 – L1 – SA – Q6 – Control Accounts

Identifying the summary account used for recording totals of transactions.

Question

A summary account, where entries are made from the totals of transactions for a period, is called:

A. Cost ledgers
B. Control accounts
C. Costing profit or loss accounts
D. Overhead accounts
E. Interlocking accounts

Answer

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Tags: Control Accounts, Summary Accounts
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

FA – May 2022 – L1 – SA – Q19 – Control Accounts

Identify the principal function of a sales ledger control account.

Question

The principal function of a sales ledger control account is to:

A. Serve as external check and provide quick information for the preparation of interim financial statements
B. Serve as internal check and provide quick information for the preparation of interim financial statements
C. Check sales fraud
D. Provide quick information for the control of salesmen’s activities
E. Provide quick information for the preparation of customer’s statements

Answer

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Tags: Control Accounts, Interim Financial Statements, Sales Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

FA – Nov 2022 – L1 – SA – Q6 – Control Accounts

Identify the use of control accounts in financial records.

Question

The control account is used in facilitating
A. The location of errors in the various accounts
B. The update of bank transactions
C. The payment of debts and liabilities of the firm
D. Location of petty cash book error
E. Balancing the trial balance

Answer

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Tags: Control Accounts, Error Detection, Trial Balance
Level: Level 1

Topic: Control Accounts
Series: NOV 2022

FA – May 2021 – L1 – SB – Q4 – Control Accounts

The question involves preparing control accounts and reconciling the balances with individual ledgers for payables and receivables.

Question

Wakanda is an African-focused company in the sales of super-tech wrist watches with corporate logos. The wrist watches are purchased and sold in bulk on credit. The accountant is currently carrying out a reconciliation of the payables and receivables ledger control account balances, which are ₦218,320,000 and ₦172,120,000, respectively, to the total of the balances on the individual accounts in the payables and receivables ledgers, which are ₦197,660,000 and ₦156,134,000 respectively for the month of March 2019.

The following has been detected:

(i) Cash received of ₦1,070,000 has been debited to the individual customer’s account in the accounts receivable ledger.

(ii) The total of discount received for the month, amounting to ₦17,150,000, has not been entered in the control account but has been entered in the individual ledger accounts.

(iii) A supplier credit balance of ₦2,050,000 has been incorrectly treated as a debit.

(iv) A cheque for ₦2,555,000 from a customer has been dishonoured. The correct double entry has been posted, but the individual accounts have not been updated.

(v) A petty cash payment to a supplier amounting to ₦630,000 has been correctly treated in the control account, but no entry has been made in the supplier’s individual ledger account.

(vi) A payment of ₦322,000 from a customer has been incorrectly entered in the accounts receivable ledger as ₦233,000.

(vii) The purchases daybook total for March has been undercast (understated) by ₦20,000,000.

(viii) Total credit sales of ₦4,500,000 to an accountancy firm, TQ and Associates, have been posted correctly to the ledger account but not recorded in the control account.

(ix) Contras (set-offs) with the receivables ledger, amounting in total to ₦20,040,000, have been correctly treated in the individual ledger accounts but no entry has been made in the control account.

(x) Discounts allowed totalling ₦120,000 have not been entered in the control account.

Required:

a) Prepare the Trade Payable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Payable Ledger. (10 Marks)

b) Prepare the Trade Receivable Ledger Control Account and reconcile this to the sum total of the individual accounts in the Trade Receivable Ledger. (10 Marks)

Answer

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Tags: Control Accounts, Financial Statements, Payables, Receivables, Reconciliation
Level: Level 1

Topic: Control Accounts
Series: MAY 2021

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

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Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – May 2016 – L1 – SB – Q4 – Control Accounts

Reconcile receivables and payables ledger control accounts with balances, clear suspense account.

Question

The trial balance of CLAVELL ENTERPRISES includes the following items:

The following information is available:

(i) The total of debit balances in the receivables ledger account is N116,374 and the total of credit balances is N1,234.

(ii) The total of credit balances in the payables ledger account is N80,412 and the total of debit balances is N1,111.

(iii) The receivables ledger account includes a debit balance of N700 for Entity C, and the accounts payable ledger includes a credit balance of N800 relating to Entity C. Only the net amount will eventually be paid.

(iv) Included in the credit balances in the receivables ledger account is a balance of N600 in the name of P Quinn. This arose because a sales invoice for N600 had earlier been posted in error from the sales day book to the debit of the account of M Quinn in the accounts payable ledger.

(v) An allowance of N300 granted to a customer for some damaged goods had been omitted from the appropriate account in the receivables ledger account. This allowance had been included in the receivables ledger control account.

(vi) An invoice for N456 had been entered in the purchases day book as N654.

(vii) A cash receipt from a credit customer for N345 had been entered in the cash book as N245.

(viii) The purchases day book had been overcast by N1,000.

(ix) The bank balance of N1,700 had been included in the trial balance, in error, as an overdraft.

(x) The debit balance on the insurance account in the nominal ledger of N3,456 has been included in the trial balance as N3,546.

Required:

a. Prepare a reconciliation of the receivable ledger control account and the receivables ledger balances. (8 Marks)

b. Open a suspense account and post the entries required to clear this account. (4 Marks)

c. Reconcile the payables ledger control account and the payables ledger balances. (8 Marks)

Answer

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Tags: Control Accounts, Error Correction, Financial Statements, Ledger Reconciliation, Payables, Receivables, Suspense account
Level: Level 1

Series: MAY 2016

FA – May 2016 – L1 – SA – Q11 – Control Accounts

A question about the meaning of the balance in the receivables control account.

Question

The balance of N1,840,000 in the receivables control account represents:
A. Amount necessary to balance the account
B. Amount due to the customers
C. Amount due from the customers
D. Amount due from cash sales
E. Amount due from sales

Answer

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Tags: Balance, Control Accounts, Receivables
Level: Level 1

Topic: Control Accounts
Series: MAY 2016

FA – May 2015 – L1 – Q4a – Trial Balance: Usefulness and Limitations

Identify the uses of a trial balance, errors that lead to a difference in trial balance figures, and errors that do not affect the balancing of the trial balance.

Question

The purpose of a trial balance is to prove the accuracy of the General Ledger accounts of a business. However, the “balancing” of the debit side and the credit side of a trial balance does not guarantee that there is no error in the General Ledger accounts.

i. State TWO uses of a trial balance to an entity. (2 Marks)
ii. State FOUR errors that may lead to difference in trial balance total figures. (2 Marks)
iii. State FOUR errors that may NOT affect the “balancing” of a trial balance. (2 Marks)

Answer

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Tags: Control Accounts, Double-Entry Accounting, Error Detection, Errors in accounting, Trial Balance
Level: Level 1

Topic: Trial Balance: Usefulness and Limitations
Series: MAY 2015

Question Tag: Control Accounts

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FA – May 2012 – L1 – SA – Q17 – Control Accounts

Identifying an advantage not associated with control accounts.

You're reporting an error for "FA – May 2012 – L1 – SA – Q17 – Control Accounts"

FA – May 2012 – L1 – SA – Q15 – Control Accounts

Identifying items not credited to the Accounts Payable Control Account.

You're reporting an error for "FA – May 2012 – L1 – SA – Q15 – Control Accounts"

FA – May 2012 – L1 – SA – Q2 – Double-Entry Accounting Principles

Identifying the shortcoming of single entry book-keeping.

You're reporting an error for "FA – May 2012 – L1 – SA – Q2 – Double-Entry Accounting Principles"

FA – Nov 2011 – L1 – SA – Q20 – Control Accounts

This question asks for another name for the Debtors Control Ledger Account.

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FA – Nov 2011 – L1 – SA – Q7 – Control Accounts

This question asks how contra entries in control accounts are corrected.

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FA – Nov 2011 – L1 – SA – Q3 – Control Accounts

This question tests knowledge on the description and function of control accounts in accounting.

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FA – Nov 2020 – L1 – SA – Q17 – Control Accounts

Identifies items recorded on the credit side of a receivables ledger control account.

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FA – Nov 2020 – L1 – SA – Q6 – Control Accounts

Identifies a feature that does not describe a control account.

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FA – Nov 2012 – L1 – SA – Q7 – Control Accounts

Identifying a source that does not provide information for preparing control accounts.

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FA – May 2014 – L1 – SA – Q7 – Control Accounts

Identifies a feature that is not characteristic of control accounts.

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FA – Nov 2015 – L1 – SB – Q5c – Bank Reconciliation

Reconcile accounts receivable ledger control with ledger balances and clear the suspense account.

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FA – Nov 2021 – L1 – SA – Q6 – Control Accounts

This question explores the role of control accounts in accounting.

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MI – May 2022 – L1 – SA – Q6 – Control Accounts

Identifying the summary account used for recording totals of transactions.

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FA – May 2022 – L1 – SA – Q19 – Control Accounts

Identify the principal function of a sales ledger control account.

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FA – Nov 2022 – L1 – SA – Q6 – Control Accounts

Identify the use of control accounts in financial records.

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FA – May 2021 – L1 – SB – Q4 – Control Accounts

The question involves preparing control accounts and reconciling the balances with individual ledgers for payables and receivables.

You're reporting an error for "FA – May 2021 – L1 – SB – Q4 – Control Accounts"

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

You're reporting an error for "FA – May 2017 – L1 – SA – Q11 – Control Accounts"

FA – May 2016 – L1 – SB – Q4 – Control Accounts

Reconcile receivables and payables ledger control accounts with balances, clear suspense account.

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FA – May 2016 – L1 – SA – Q11 – Control Accounts

A question about the meaning of the balance in the receivables control account.

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FA – May 2015 – L1 – Q4a – Trial Balance: Usefulness and Limitations

Identify the uses of a trial balance, errors that lead to a difference in trial balance figures, and errors that do not affect the balancing of the trial balance.

You're reporting an error for "FA – May 2015 – L1 – Q4a – Trial Balance: Usefulness and Limitations"

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